93 Gross Regular Base Salary: The gross base monthly salary that the employee receives for his/her classification as an employee of the City of Fountain Valley. The gross regular base pay does not include specialty assignment, Peace Officers Standards and Training (P.O.S.T.) certification pay, special certification pay, uniform allowance, overtime or any other additional compensation.
EMPLOYER OBLIGATIONS:
In accordance with the California Military and Veterans Code Section 395 et seq, the City of Fountain Valley will provide wage continuation benefits to employees who are military reservists and who are on military leave of absence. Such employees will receive up to 180 calendar days of military leave of absence for involuntary active duty in time of war, armed conflict, United Nations Resolution or imminent danger.
Wage Continuation: Employees called to mandatory active duty will receive wage continuation of their gross regular base salary for a maximum of 30 calendar days while on active duty/military leave of absence within a fiscal year. Employees called to mandatory temporary military leave, will receive wage continuation of their gross regular base salary for a maximum of 30 calendar days within a fiscal year. Each employee will, therefore, be eligible for a maximum of 30 calendar days wage continuation of their gross regular base salary for active duty and a maximum of 30 calendar days wage continuation of their gross regular base salary for temporary military leave within a fiscal year. Voluntary, not mandated, active duty or temporary military leave will not be compensated. Employee documentation submitted is subject to employer verification.
Employees’ leave for regularly scheduled reserve drill periods (weekend drills) for employees hired after February 19, 2002 is not considered active duty or temporary military leave and the employee will not be compensated for such absences. However, such employees may adjust his/her work schedule to accommodate his/her leave for the drill period subject to Department Director approval. If the employee is not able to adjust his/her work schedule, he/she may use accrued vacation or compensatory leave or administrative leave, if applicable, while on such leave. If the employee cannot adjust his/her schedule and does not use accrued vacation or compensatory leave or administrative leave, if applicable, he/she will not receive compensation from the City while off work to attend scheduled reserve drill periods (weekend drills).
Employees’ leave for regularly scheduled reserve drill periods (weekend drills) for employees hired before February 19, 2002 is not considered active duty but is considered temporary military leave and the employee will be compensated for such absences for a maximum of 30 calendar days within a fiscal year for all combined temporary military duty subject to the provisions as noted below. The employee on such leave would be paid by the City as long as the employee has made every effort to change shifts but was unable to do so. Such an employee would be paid the difference between his City pay (including specialty and other applicable pays) and military pay as long as the employee submits required documentation detailing the period of leave and military compensation paid.
94 Benefits Accrual Continuation: While on military leave of absence, the employee shall for up to 180 calendar days per fiscal year when called to military leave of absence for involuntary active duty in time of war, armed conflict, United Nations Resolution or imminent danger receive the same vacation accrual, sick leave accrual and holiday pay and the same rights and privileges to promotion and continuance in office that the employee would have been entitled to if not on leave, provided the employee has been in public agency service for at least one year.
Medical and Dental Benefits Continuation: While on active duty and temporary military leave of absence, the City will provide continued medical coverage for the employee and his/her dependents covered under the City’s medical plan prior to the employee being called to active duty or temporary military leave of absence and the employee’s dental coverage for a period not to exceed a total of 180 calendar days. The City will continue to contribute up to the maximum City contribution for employees in that bargaining unit and the employee will continue to pay for any premiums in excess of the maximum City contribution. Note that the employee may continue dependent dental coverage for those dependents covered under the City’s dental plan prior to the employee being called to active duty or temporary military leave; however, the employee will continue to be required to pay the dependent dental premium.
Upon termination of medical and dental benefits effective the 182nd calendar day of active duty and temporary military leave of absence, the employee and his/her dependents are eligible to elect continued coverage at the employee’s expense under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Upon expiration of benefits, the employee will be notified of their right to elect COBRA benefits and, if elected, will be required to pay the full premium plus all administrative costs associated with COBRA coverage to continue medical and dental coverage.
Retirement Benefits: In accordance with 38 U.S.C. Section 4318 (b)(1), upon re-employing an employee returning from military leave the City will contribute the same amount to the retirement plan that would have been contributed had the employee not left as long as the employee returns to employment with the City within six months of honorable discharge from active duty in accordance with State Government Code Section 20990 through 20998.
Furthermore, in accordance with 38 U.S.C. Section 4318 (a)(2)(A), the employee shall be treated as not having incurred a break in service.
Involuntary Active Duty in Time of War, Armed Conflict, United Nations Resolution or Imminent Danger: An employee called to involuntary active duty in time of war, armed conflict, United Nations Resolution or imminent danger, will be eligible to receive wage continuation beyond the first 30 calendar days in a fiscal year. Such an employee called to active duty, upon completion of the first 30 calendar days in a fiscal year of wage continuation, will receive the difference between his/her gross regular base military pay and his/her gross regular base salary with the City to ensure wage continuation for a period not to exceed 150 calendar days in a fiscal year. This benefit is provided over and above what is required by federal and state laws.
Special Consideration: The City Council or its designee (City Manager) will have the authority to give special consideration, including providing additional benefits, under special
95 circumstances determined on a case-by-case basis. Additional benefits would be to extend wage continuation and City contributions to medical and dental benefits up to 365 days. Wage continuation will be the difference between the employee’s gross regular base military pay and the employee’s gross regular base with the City. Medical and dental benefits continuation will include continued City contributions up to the maximum paid to employees in the bargaining unit though the employee will continue to pay for any premiums in excess of the maximum City contribution and for dependent dental premiums.
Re-employment Rights of Employees Returning from Military Leave: In accordance with 38 U.S.C. 4312, employees returning from military leave are entitled to re-employment rights if:
The person has given advance written or verbal notice of such military service to the City;
The cumulative length of absence and of all previous absences from a position of employment with the City by reason of military service does not exceed five years; and The returning veteran reports to, or submits a written notice, to the City in accordance with the notice provisions below:
An employee who has been on active duty for less than thirty-one (31) calendar days must notify the City of his/her intent to return to work no later than the beginning of the first full regularly scheduled work period on the first full calendar day following the completion of the period of service, or if through no fault of his/her own, the employee cannot report as set forth above, he/she must do so as soon as possible.
An employee who has been on active duty for more than thirty (30) calendar days but less than 181 calendar days must submit an application for reemployment with the City not later than fourteen (14) calendar days after the completion of the service, or if through no fault of his/her own, the employee is unable to serve the notice in the manner described, then he/she must do so by the first full calendar day when submission of the application is possible.
An employee who has been on active duty for more than 180 calendar days, must submit an application for employment no later than ninety (90) calendar days after the completion of the service.
If an employee is hospitalized, convalescing or recovering from an illness or injury incurred or aggravated during the active duty, the employee must report at the end of the period needed for recovery, up to two years, unless the ability to report within the two-year period is impossible or unreasonable due to circumstances beyond the employee’s control.
The employee re-employment rights are subject to all provisions of 38 U.S.C.
Section 4312 including employer rights to refuse re-employment.
96 EMPLOYEE OBLIGATIONS:
The employee shall notify his/her supervisor and the Personnel Department so far in advance, as is reasonably possible, of the employee’s scheduled military duty and training including reserve drill periods. The employee shall also provide the City with adequate documentation including copies of official orders and other related information support requests for military leave, compensation and reemployment and to submit completed forms as required within the timeframe specified.
Upon release from military leave, the employee shall notify the City in accordance with the provisions as noted in this policy. ____________________________ City Clerk (Originally adopted February 19, 2002.)
97 CITY COUNCIL POLICY
POLICY AGAINST HARASSMENT, DISCRIMINATION AND RETALIATION BY ELECTED AND
APPOINTED OFFICIALS
ISSUE:
POLICY AGAINST HARASSMENT, DISCRIMINATION AND RETALIATION BY ELECTED AND
APPOINTED OFFICIALS
POLICY STATEMENT:
Harassment or discrimination against applicants, officers, officials, employees, unpaid interns, volunteers or contractors by an elected or appointed official on the basis of any protected classification, as defined below, will not be tolerated.
Any retaliation against a person for filing a harassment charge or making a harassment complaint is prohibited. Individuals found to be retaliating in violation of this Policy will be subject to appropriate sanction.
A separate policy against harassment, discrimination and retaliation applicable to City employees will be established in an Administrative Regulation.
POLICY:
This Policy prohibits City elected or appointed officials from harassing or discriminating against applicants, officers, officials, employees, unpaid interns, volunteers or contractors because of:
1. An individual’s protected classification;
2. The perception that an individual has a protected classification; or
3. The individual associates with a person who has or is perceived to have a protected classification.
This Policy also prohibits City elected or appointed officials from engaging in retaliation, as defined herein.
DEFINITIONS:
Protected Classifications: An individual’s protected classification includes race, religion, color, sex (including gender, gender identity, gender expression, transgender, pregnancy and breastfeeding),
98 sexual orientation (including homosexuality, bisexuality or heterosexuality), national origin, ancestry, citizenship status, marital status, pregnancy, age, medical condition, genetic characteristics or information, military and veteran status and physical or mental disability.
Discrimination: Discrimination means treating an individual differently because of the individual’s protected classification as defined in this Policy.
Harassment: Harassment includes, but is not limited to, the following types of behavior, taken because of a person’s protected classification, and can include conduct taken by those who are not employees such as elected officials, appointed officials, persons providing services under contracts or even members of the public:
1. Speech: Such as epithets, derogatory comments or slurs, and propositioning on the basis of a protected classification. This might include inappropriate comments on appearance, including dress or physical features, or dress consistent with gender identification or raceoriented stories and jokes.
2. Physical Acts: Such as assault, impeding or blocking movement, offensive touching or any physical interference with normal work or movement. This includes pinching, grabbing, patting, propositioning, leering, or making explicit or implied job threats or promises in return for submission to physical acts.
3. Visual Insults: Such as derogatory posters, cartoons, e-mails, pictures or drawings related to a protected classification.
4. Unwanted Sexual Advances: Requests for sexual favors and other acts of a sexual nature, where submission is made a term or condition of employment, where submission to or rejection of the conduct is used as the basis of employment decisions, or where the conduct is intended to or actually does unreasonably interfere with an individual’s work performance or create an intimidating, hostile, or offensive work environment.
5. Abusive Conduct: Conduct in the workplace, with malice that a reasonable person would find hostile, offensive and unrelated to an employer’s legitimate business interests. Such conduct may include repeated infliction of verbal abuse, such as the use of derogatory remarks, insults and epithets, verbal or physical conduct that a reasonable person would find threatening, intimidating or humiliating. A single act shall not constitute abusive conduct, unless especially severe and egregious.
Retaliation: Any adverse conduct taken because an applicant, officer, official, employee, unpaid intern, volunteer or contractor has reported harassment, discrimination, or has participated in the complaint and investigation process described herein is prohibited. “Adverse conduct” includes, but is not limited to, taking sides because an individual has reported harassment or discrimination,
99 spreading rumors about a complaint, shunning and avoiding an individual who reports harassment or discrimination, or real or implied threats of intimidation to prevent an individual from reporting harassment or discrimination.
GUIDELINES FOR IDENTIFYING HARASSMENT:
To help clarify what constitutes harassment in violation of this Policy, use the following guidelines:
1. Harassment includes any conduct which would be “unwelcome” to an individual of the recipient’s same protected classification and which is taken because of the recipient’s protected classification.
2. It is no defense that the recipient appears to have voluntarily “consented” to the conduct at issue. A recipient may not protest for many legitimate reasons, including the need to avoid being insubordinate or to avoid being ostracized.
3. Simply because no one has complained about a joke, gesture, picture, physical contact, or comment does not mean that the conduct is welcome. Harassment can evolve over time. The fact that no one is complaining now does not preclude anyone from complaining if the conduct is repeated in the future.
4. Even visual, verbal or physical conduct between two employees who appear to welcome the conduct can constitute harassment of a third applicant, officer, official, employee or contractor who observes the conduct or learns about the conduct later. Conduct can constitute harassment even if it is not explicitly or specifically directed at an individual.
5. Conduct can constitute harassment in violation of this Policy even if the individual engaging in the conduct has no intention to harass. Even well-intentioned conduct can violate this Policy if the conduct is directed at, or implicates a protected classification, and if an individual of the recipient’s same protected classification would find it offensive (e.g., gifts, over attention, endearing nicknames).
REPORTING HARASSMENT:
All complaints shall be in writing and shall contain the following information:
1. The complainant’s name. If the complainant is an employee, the employee’s department and position title will also be provided.
2. The name of the person or persons committing the harassment, including their title(s), if known.
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3. The specific nature of the harassment, how long it has gone on, and any action taken against the victim as a result of the harassment (if applicable), or any other threats made against the victim as a result of the harassment.
4. Witnesses to the harassment and the events and dates witnessed.
5. Whether the victim had previously reported such harassment and, if so, when and to whom.
INVESTIGATION OF COMPLAINTS:
Alternative 1: Labor Firm Recommendation
The complaint shall be forwarded to the Mayor. In the event the complaint is against the Mayor, the complaint shall be forwarded to the Mayor Pro Tempore. The Mayor or Mayor Pro Tempore shall contact the City’s labor law firm and obtain a recommendation for an outside, neutral, and independent attorney investigator and engage the services of that attorney to investigate the complaint. The Mayor or Mayor Pro Tempore may award and execute a contract with the attorney without further approval of the Council.
Alternative 2: JAMS
The complaint shall be forwarded to the Mayor. In the event the complaint is against the Mayor, the complaint shall be forwarded to the Mayor Pro Tempore. The Mayor or Mayor Pro Tempore shall contact JAMS (an arbitration, mediation, and ADR services firm) to engage the services of an independent neutral evaluator from JAMS’ panel to investigate the complaint. The neutral evaluator must be capable of preparing a written investigation report, protected by the attorney-client privilege, containing findings of fact and, where applicable, recommendations for remedial action. The Mayor or Mayor Pro Tempore may award and execute a contract with JAMS without further approval of the Council.
The investigation will include interviews with:
1. The complainant;
2. The accused; and
3. Other persons who have relevant knowledge concerning the complaint.
A summary of the completed investigation, including the investigator’s conclusions regarding whether prohibited conduct occurred and, if applicable, suggested remedial action, shall be provided to the Council (excluding the accused Council Member).
Remedial action, if any, may include, but is not limited to, agendizing a motion for censure, mandatory
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harassment training paid by the individual, and payment for the cost of the investigation. The Council may discuss the matter and receive briefings in closed session where necessary for purposes of addressing pending or potential litigation. Thereafter, the investigator’s conclusions and remedial action, if any, imposed by the Council shall be provided to the complainant and the accused.
The contents of the investigative documentation and report are privileged information in order to protect the rights of privacy of the complainant, the accused, and all parties involved in the investigation and will therefore not be released. Additional information will only be released by court order, or for other uses determined to be appropriate by the Attorneys for the City.
An individual has the option to report harassment, discrimination or retaliation to the U.S. Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing (DFEH). These administrative agencies offer legal remedies and a complaint process. (http://www.eeoc.gov/employees/charge.cfm)
(http://www.dfeh.ca.gov/Complaints_ComplaintProcess.htm) CONFIDENTIALITY:
Every possible effort will be made to assure the confidentiality of complaints made under this Policy.
Complete confidentiality cannot occur, however, due to the need to fully investigate and the duty to take effective remedial action. As a result, confidentiality will be maintained to the extent possible. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by the investigator or City Manager. Any individual who discusses the content of an investigatory interview will be subject to discipline or other appropriate sanction.
ELECTED AND APPOINTED OFFICIALS RESPONSIBILITIES:
1. Conduct him/herself consistently with the anti-harassment and anti-retaliation policy as set forth herein; and
2. Report any act which he/she believes in good faith constitutes harassment as defined herein to the Mayor; and
3. Maintain the confidentiality of any investigation conducted by the Mayor or his/her designee pursuant to this Policy by not disclosing the substance of any investigatory interview, except for discussing it with his/her representative; and
4. Cooperate fully with such investigation into alleged violations of this policy by responding fully and truthfully to all questions posed during the investigation; and
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5. Be familiar with this policy and modeling behavior that is consistent with it; and
6. Participating in prevention of harassment training within six months of appointment then every 2 years thereafter; and
7. Report any potential violations of this Policy of which he/she becomes aware. ____________________________ City Clerk
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CITY COUNCIL POLICY
POLICY OF NON-DISCRIMINATION TOWARDS SEX, RACE, COLOR, NATIONAL ORIGIN,
RELIGION, AGE, OR HANDICAP IN ADMISSION OR ACCESS TO OR TREATMENT IN
PROGRAMS AND ACTIVITIES
ISSUE:
POLICY OF NON-DISCRIMINATION TOWARDS SEX, RACE, COLOR, NATIONAL ORIGIN,
RELIGION, AGE, OR HANDICAP IN ADMISSION OR ACCESS TO OR TREATMENT IN
PROGRAMS AND ACTIVITIES
PURPOSE:
In accordance with Federal Statutes 42 USC 6101, 42 USC 2000d, and 29 USC 794, it shall be the policy of the City that no person shall be excluded, denied benefits, or be subjected to discrimination in its programs and activities because of race, color, national origin, handicap, religion, or sex.
ENFORCEMENT:
The Office of the City Manager has the responsibility for enforcing the non-discrimination provisions and for investigating all complaints of alleged discrimination received by the office. Possible violations should be reported to the Office of the City Manager, 10200 Slater Avenue, Fountain Valley, CA 92708. As much specific information and documentation as possible concerning the allegation should be included. If requested, the Office of the City Manager will advise the complainant of the progress of the investigation.
1. The complaint must be filed in writing, and include the following information:
Complainant’s name, address, and telephone number.
The date, time, and location of the incident.
The name and any relevant information regarding the individual the complaint is against.
The name, contact number, and any relevant information of witnesses to the incident.
Specific details of the incident.
2. The complaint must be filed within ten days after the complainant has become aware of the alleged violation.
3. An investigation, as may be appropriate, shall follow a filing of a complaint. The investigation will be conducted by the City Manager or his/her designee.
4. A written determination as to the findings regarding the complaint resolution, if any, should be issued by the City Manager and a copy forwarded to the complainant no later than 45 days after its filing. Extenuating circumstances may require a longer investigatory period.
5. The City Clerk shall maintain the files and records of the City of Fountain Valley relating to the complaints filed.
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6. The complainant can request a reconsideration of the case in instances where he or she is dissatisfied with the resolution. The request for reconsideration should be made within ten calendar days (of the date the City Manager issues his/her findings) and addressed to the City Manager.
7. The right of a person to a prompt and equitable resolution of the complaint filed hereunder shall not be impaired by the person’s pursuit of other remedies. Utilization of this grievance procedure is not a prerequisite to the pursuit of other remedies.
8. These rules shall be construed to protect the substantive rights of interested persons to meet appropriate due process standards and to assure that the City of Fountain Valley complies with applicable Federal non-discrimination laws. ____________________________ City Clerk (Republished January 16, 2007.)
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CITY COUNCIL POLICY
RECLASSIFICATION OF POSITIONS
ISSUE:
RECLASSIFICATION OF POSITIONS
The City of Fountain Valley maintains a classification and compensation plan for permanent full-time positions and for part-time positions. In order to ensure that employees are assigned to the appropriate classification, based on the needs of the Department or Division and the nature of the employee’s duties, it is necessary to develop a policy regarding the classification and reclassification of positions.
PURPOSE:
Pursuant to Section 2.52.020 of the Fountain Valley Municipal Code and Chapter 3 of the City of Fountain Valley Personnel Rules and Regulations, the City Manager, as the Personnel Officer of the City, is authorized to establish and maintain a position classification plan for all positions in the competitive service.
POLICY STATEMENT:
It is the policy of the City of Fountain Valley to employ and utilize employees in those classifications specified in the City’s Classification Plan, based on the City’s service objectives, the human resource requirements of the various organizational units to accomplish those objectives, and the duties and responsibilities of individual positions.
When it appears that the job classification duties and responsibilities of the classification and/or benchmark classification do not accurately reflect the nature of the duties and responsibilities being performed by an employee or group of employees, the City will initiate certain procedures to ensure that the employee’s classification and job description coincide with the duties and responsibilities actually being performed.
If the duties/responsibilities of a position change, it is incumbent upon the City to ensure the employee works within the class specification or to reclassify affected employees to a more appropriate classification and benchmark classification. Although funds must be budgeted for such changes, reclassification and related actions are not simply economic or fiscal decisions, they are also based upon the needs of the Department and City as well.
Based on the aforementioned, the City Council policy with respect to reclassification of positions shall be as follows:
1. The City Manager shall develop procedures for processing reclassification requests and related personnel transactions, consistent with this policy and the requirements of the competitive service.
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2. The City Manager shall have the authority to approve reclassification requests for all classifications, except for the following categories, which shall require City Council approval:
a. Administrative Officers or Department Directors
b. Professional/Technical positions
c. Sworn Police and Fire Management positions
d. Reclassification of a non-management position to a management position
3. Any reclassifications approved by the City Manager shall be reported to the City Council. ____________________________ City Clerk (Originally adopted October 1, 1985.)
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CITY COUNCIL POLICY
RECLASSIFICATION REQUESTS
ISSUE:
RECLASSIFICATION REQUESTS
PURPOSE:
To establish a procedure for processing reclassification requests.
POLICY STATEMENT:
In accordance with City Council policy on Reclassification of Positions:
"It is the policy of the City of Fountain Valley to employ and utilize employees in those classifications specified in the City's Classification Plan, based on the City's human resource requirements of the various organizational units to accomplish those objectives and the duties and responsibilities of individual positions.
When it appears that the title or duties and responsibilities of a classification do not accurately reflect the nature of the duties and responsibilities being performed by an employee or group of employees, the City will initiate certain procedures to ensure that the employee's classification and job description coincide with the duties and responsibilities actually being performed." The following procedures shall apply to all City employees with respect to initiating and processing reclassification requests:
B. Employee Request: An employee who believes his/her job classification, duties, and responsibilities of the classification and/or benchmark classification do not accurately reflect the nature of the duties and responsibilities performed may submit a written reclassification request to his/her supervisor which must include the following information:
1. The factual basis upon which the employee believes his/her present job classification and/or benchmark classification is not appropriate;
2. Backup material and/or documentation to support the reclassification request;
3. The classification the employee believes is appropriate based on the duties and responsibilities performed. Page 242
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C. Supervisor Review: The supervisor shall carefully review the request and shall forward the report with his/her findings and recommendation either to reject or endorse the request to the Department Director.
Administrative Regulation - 31
RECLASSIFICATION REQUESTS
September 26, 2006 (revised)
D. Department Director Review and Determination: The Department Director shall review the request and, if he/she believes that a reclassification study is not justified, shall deny the request and return the report to the employee with an explanation of why the request has been denied. If the Department Director believes that a reclassification study is justified, he/she shall forward the request to the City Manager with a report substantiating his/her support of the reclassification request. The Human Resources Office, if directed by the City Manager, shall then conduct a reclassification study for the position.
E. Reclassification Study and City Manager Determination: Following a complete review of the reclassification request by the Human Resources Office, a report shall be forwarded to the City Manager which will describe the nature of the employee's request, the financial implications of the request, and a recommendation for approval or disapproval. The City Manager may either: (1) return the report for further analysis and comment, (2) deny the request and return the report to the Department Director with an explanation of why the report has been denied, or (3) approve the recommended action.
F. The City Manager has the authority to approve reclassification requests for all classifications, except for the following categories which shall require City Council approval:
1. Administrative Officers or Department Directors
2. Professional/Technical positions
3. Sworn Police and Fire Management positions
4. The reclassification of a non-management position to a management position.
The Department Director will, however, have to secure funding for any reclassification resulting in increased cost to the City. ____________________________ City Clerk (Republished January 16, 2007.)
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(Original signed by J.L. Kelsey- 8/7/1989.)
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CITY COUNCIL POLICY
RETIREMENT AWARD RECOGNITION
ISSUE:
RETIREMENT AWARD RECOGNITION
PURPOSE:
The purpose of this policy is to establish guidelines for Council recognition of full-time employee service retirements.
POLICY STATEMENT:
To honor full-time employees retiring from the City of Fountain Valley with a service retirement, the following categories have been established. All employees who meet the conditions of retirement, as defined below, are eligible to receive the awards outlined within each category.
Definition of Retirement – Any full-time employee with at least five (5) years of continuous employment with the City, reached the minimum age requirement of fifty (50) years, and has met the PERS conditions for service retirement.
Category A – Eligible employees as defined above with 5 to 14 continuous years of service:
Sworn employees – A retirement badge, Certificate of Appreciation, and gift from the City as noted below.
Non-sworn employees – A Certificate of Appreciation and gift from the City as noted below.
Category B – Eligible employees as defined above with 15 or more years of continuous service and above:
Sworn employees – A retirement badge, a Retirement Proclamation, and gift from the City as noted below.
Non-sworn employees – A Retirement Proclamation and gift from the City as noted below.
Retirement Gifts:
Eligible employees with 5 to 9 years of continuous full-time service will receive a gift valued at $25.
Eligible employees with 10 to 14 years of continuous full-time service will receive a gift valued at $50.
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Eligible employees with 15 to 19 years of continuous full-time service will receive a gift valued at $75.
Eligible employees with 20 to 24 years of continuous full-time service will receive a gift valued at $100.
Eligible employees with 25 to 29 years of continuous full-time service will receive a gift valued at $125.
Eligible employees with 30 to 34 years of continuous full-time service will receive a gift valued at $150.
Eligible employees with 35+ years of continuous full-time service will receive a gift valued at $175.
Disability Retirements – At the discretion of Council, any employee who is retired due to an injury in the line of duty may receive special recognition, regardless of length of tenure with the City. At the recommendation of the Department Director and City Manager, the Council, at their discretion, may authorize recognition of any employee who is retired under a job-related disability regardless of the length of tenure with the City. The above categories may be used as guidelines to the appropriate recognition for such employees.
Presentation of Awards – Retirement Award Recognitions shall be presented by the City Council at the Council meeting closest to the date of the employee’s retirement from the City, or at the employee’s retirement celebration. ____________________________ City Clerk (Republished January 16, 2007.)
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PUBLIC WORKS
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CITY COUNCIL POLICY
CIVIL PROCESSING OF PARKING CITATIONS
ISSUE:
CIVIL PROCESSING OF PARKING CITATIONS
PURPOSE:
The purpose of this policy is to establish guidelines for the management and oversight of the civil processing of parking citations through a contract company and for the selection, training and administration of the civil parking hearing process. LEGAL OVERVIEW:
The California Vehicle Code Section 40200 permits the City to adopt an ordinance establishing a civil citation system for the processing of parking violations. This civil citation system may include contracting with a private company to collect those fines (CVC 40200.5), the administration of the system including oversight of the contract company (CVC 40200.6), establishing fines and penalties (CVC 40203.5) and the establishment of a system for violators to contest the citation, including the selection and training of hearing officers to conduct those hearings (CVC 40215).
POLICY STATEMENT:
Contracting Parking Citation Processing and Fine Collection (CVC 40200.5) CVC 40200.5 reads as follows;
"(a) Except as provided in subdivision (c) of Section 40200.4, an issuing agency may elect to contract with the county, with a private vendor, or with any other city or county processing agency, other than the Department of the California Highway Patrol or other state law enforcement agency, within the county, with the consent of that other entity, for the processing of notices of parking violations and notices of delinquent parking violations, prior to filing with the court pursuant to Section 40230.
If an issuing agency contracts with a private vendor for processing services, it shall give special consideration to minority business enterprise participation in providing those services. For purposes of this subdivision, "special consideration" has the same meaning as specified in subdivision (c) of Section 14838 of the Government Code, as it relates to small business preference. (b) Any contract entered pursuant to subdivision (a) shall provide for monthly distribution of amounts collected between the parties, except those amounts payable to a county pursuant to Chapter 12
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(commencing with Section 76000) of Title 8 of the Government Code and amounts payable to the Department of Motor Vehicles pursuant to Section 4 763 of this code." The Police Department contracts with a private company for the processing of parking citations. This company has established procedures for processing citations, which are a cost savings for the City and are consistent with California Vehicle Code requirements. These procedures include collecting the citations from the Police Department, data entry into a computer data base, methods for receiving fines from violators (including by mail, telephone and the internet), notifications to violators who have failed to pay their fines and California Department of Motor Vehicle registration holds, collection agency referral and attachment to their credit report for unpaid and overdue citations. Administration and Oversight of the Contract Company (CVC 40200.6(a)) CVC 40200.6(a) reads as follows;
"(a) If a contract is entered into pursuant to CVC Section 40200.5, for the purposes of this article, ''processing agency" means the contracting party responsible for the processing of the notices of parking violations and notices of delinquent parking violations. (b) The governing body of the issuing agency shall establish written policies and procedures pursuant to which the contracting party shall provide services.
(c) The issuing agency shall be responsible for all actions taken by contracting parties and shall exercise effective oversight over the parties. "Effective oversight" includes, at a minimum, an annual review of the services of the processing agency and a review of complaints made by motorists using the services of the processing agency. The issuing agency shall establish procedures to investigate and resolve complaints by motorists about any processing agency. (d) Subdivision (c) does not apply to an issuing agency that is a law enforcement agency if the issuing agency does not also act as the processing agency."
The parking citation processing company shall maintain a website that is accessible by police personnel. The website offers access to financial, fund distribution and processing reports. Included in the website is access to other data including total number of citations issued by month, total citations issued by the top ten officers and the citation hearing disposition report for contested citations. A monthly report shall be provided which details the fines collected by citation serial number, total amount collected and amount paid to the City. This financial information shall also detail the amount the City is required to pay to the County and State for parking penalties, equipment and registration violations and for the courthouse construction and criminal justice facilities funds.
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The Police Department has a procedure in place to receive and investigate complaints against the parking citation processing company. This process includes receiving the complaint and forwarding via email to the Traffic Bureau Sergeant. The Traffic Bureau Sergeant records in a computer file the complaint and disposition after it has been investigated. The City Manager shall review the services and complaints of motorists arising out of the performance of the contract each year and advise the Council regarding the same. Civil Citation Fines and Penalties (CVC 40203.5) CVC 40203.5 reads as follows; "(a) The schedule of parking penalties for parking violations and late payment penalties shall be established by the governing body of the jurisdiction where the notice of violation is issued. To the extent possible, issuing agencies within the same county shall standardize parking penalties. (b) Parking penalties under this article shall be collected as civil penalties." The fine amount for California Vehicle Code parking violations is established by the State. Those parking violations that are established by local ordinance are established to the extent possible within the norms for the surrounding agencies. Establishment of a System to Contest the Citation and the Selection and Training of Hearing Officers (CVC 40215)
CVC 40215 reads as follows;
"(a) For a period of 21 calendar days from the issuance of a notice of parking violation or 14 calendar days from the mailing of a notice of delinquent parking violation, a person may request an initial review of the notice by the issuing agency. The request may be made by telephone, in writing, or in person. There shall be no charge for this review. If, following the initial review, the issuing agency is satisfied that the violation did not occur, that the registered owner was not responsible for the violation, or that extenuating circumstances make dismissal of the citation appropriate in the interest of justice, the issuing agency shall cancel the notice of parking violation or notice of delinquent parking violation. The issuing agency shall advise the processing agency, if any, of the cancellation. The issuing agency or the processing agency shall mail the results of the initial review to the person contesting the notice. (b) If the person is dissatisfied with the results of the initial review, the person may request an administrative hearing of the violation no later than 21 calendar days following the mailing of the results of the issuing agency's initial review. The request may be made by telephone, in writing, or in person. The person requesting an administrative hearing shall deposit the amount of the parking
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penalty with the processing agency. The issuing agency shall provide a written procedure to allow a person to request an administrative hearing without payment of the parking penalty upon satisfactory proof of an inability to pay the amount due. Notice of this procedure shall be provided to all persons requesting an administrative hearing. After January 1, 1996, an administrative hearing shall be held within 90 calendar days following the receipt of a request for an administrative hearing, excluding time tolled pursuant to this article. The person requesting the hearing may request one continuance, not to exceed
21 calendar days.
(c) The administrative hearing process shall include the following:
(1) The person requesting a hearing shall have the choice of a hearing by mail or in person. An inperson hearing shall be conducted within the jurisdiction of the issuing agency. If an issuing agency contracts with an administrative provider, hearings shall be held within the jurisdiction of the issuing agency or no more than 21 miles outside the county.
(2) If the person requesting a hearing is a minor, that person shall be permitted to appear at a hearing or admit responsibility for the parking violation without the necessity of the appointment of a guardian. The processing agency may proceed against the minor in the same manner as against an adult. (3) The administrative hearing shall be conducted in accordance with written procedures established by the issuing agency and approved by the governing body or chief executive officer of the issuing agency. The hearing shall provide an independent, objective, fair, and impartial review of contested parking violations.
(4) (A) The issuing agency's governing body or chief executive officer shall appoint or contract with qualified examiners or administrative hearing providers that employ qualified examiners to conduct the administrative hearings. Examiners shall demonstrate those qualifications, training, and objectivity necessary to conduct a fair and impartial review. An examiner shall not be employed, managed, or controlled by a person whose primary duties are parking enforcement, parking citation, processing, collection, or issuance. The examiner shall be separate and independent from the citation collection or processing function. An examiner's continued employment, performance evaluation, compensation, and benefits shall not, directly or indirectly, be linked to the amount of fines collected by the examiner.
(BJ Examiners shall have a minimum of 20 _hours of training. The examiner is responsible for the costs of the training. The issuing agency may reimburse the examiner for those costs. Training may be provided through (i) an accredited college or university, (ii) a program conducted by the Commission on Peace Officer Standards and Training, (iii) American Arbitration Association or a similar established organization, or (iv) through any program approved by the governing board of the issuing agency, including a program developed and provided by, or for, the agency. Training programs may include topics relevant to the administrative hearing, including, but not limited to,
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applicable laws and regulations, parking enforcement procedures, due process, evaluation of evidence, hearing procedures, and effective oral and written communication. Upon the approval of the governing board of the issuing agency, up to 12 hours of relevant experience may be substituted for up to 12 hours of training. In addition, up to eight hours of the training requirements described in this subparagraph may be credited to an individual, at the discretion of the governing board of the issuing agency, based upon training programs or courses described in (i) to (iv}, inclusive, that the individual attended within the last five years.
(5) The officer or person who issues a notice of parking violation shall not be required to participate in an administrative hearing. The issuing agency shall not be required to produce any evidence other than the notice of parking violation or copy thereof and information received from the Department of Motor Vehicles identifying the registered owner of the vehicle. The documentation in proper form shall be prima facie evidence of the violation.
(6) The examiner's decision following the administrative hearing may be personally delivered to the person by the examiner or sent by first-class mail.
(7) Following a determination by the examiner that a person has committed the violation, the examiner may, consistent with the written guidelines established by the issuing agency, allow payment of the parking penalty in installments, or an issuing agency may allow for deferred payment or allow for payments in installments, if the person provides evidence satisfactory to the examiner or the issuing agency, as the case may be, of an inability to pay the parking penalty in full. If authorized by the governing board of the issuing agency, the examiner may permit the performance of community service in lieu of payment of a parking penalty.
(d) The provisions of this section relating to the administrative appeal process do not apply to an issuing agency that is a law enforcement agency if the issuing agency does not also act as the processing agency."
The Police Department has been utilizing a civil hearing system for violators to contest citations. This civil hearing system provides two opportunities for a cited person to contest the citation. The first method for contesting a parking citation is the initial review and is detailed on the front of the violator's copy. The initial review requires the violator to write a letter requesting a review. In the letter the violator must provide copies of all applicable documents and state the reason why they should not be found liable for the violation. The letter must be filed within (21) days of issuance of the citation and mailed to the post office box indicated on the citation. This letter is received by the citation processing agency and is forwarded to the Police Department, where it is reviewed by the Traffic Sergeant. A form is completed by the Traffic Sergeant and sent back to the citation processing agency with the findings. The violator is notified of the findings by mail.
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Should the violator be found liable in the administrative review, they may request an in person or telephonic administrative hearing with a hearing officer. The hearing officer is a civilian volunteer appointed by the City Manager. They are provided a total of 20 hours training prior to being appointed, as required by law. Although the hearing officer is appointed by the City Manager, they are not employed, managed or controlled by a person whose primary duties are parking enforcement, parking citation processing, collection or issuance. They are not involved in the issuance of any parking citations.
Their hearings and findings are conducted independent of and rendered without input from police personnel.
Should the person still be found liable for the fine, they may then contest the citation in Superior Court. ____________________________ City Clerk (Adopted March 18, 2008.)
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CITY COUNCIL POLICY
CURB AND GUTTER RESTORATION
ISSUE:
CURB AND GUTTER RESTORATION POLICY
PURPOSE:
This policy establishes procedures for the inspection, repair and replacement of damaged curb and gutter.
POLICY STATEMENT:
Curb and gutters are subject to damage from tree roots and settling soil conditions, and when so damaged may constitute a safety hazard and/or contribute to poor drainage and standing water. Each fiscal year the City Council appropriates specific funding for curb and gutter repair and replacement.
Repair and replacement of the damaged portions of curb and gutter will be accomplished according to the following policy:
1. Curb and gutter inspections will be conducted as follows: (1) in conjunction with the City’s annual residential pavement rehabilitation project to ensure the necessary repairs are completed prior to pavement resurfacing; (2) inspections of either observed or reported potential deficiencies to ensure necessary repairs are affected in a timely manner; and (3) so that over a reasonable period of time the entire City will be completely inspected. Damaged curb and gutter will be identified and categorized and a schedule for curb and gutter repair or replacement will be developed.
2. The repair schedule will be categorized on the severity of the hazard. Curb and gutter displacement height of 1½” or greater will be replaced on a highest need basis. A list of locations will be kept by the Superintendent of Streets/FleetField Services Division. Staff will work from the established list of locations using the following criteria:
a) Safety hazard and contributes to poor drainage and standing water b) Exceed 1½” displacement
c) Damage to streets and other public improvements
d) Coordination with other projects such as residential pavement rehabilitation Each year Council will appropriate specific funds for curb and gutter replacement. ____________________________ City Clerk (Policy updated February 5, 2008.)
(Policy updated 12/10/2007.)
(Procedure revised and adopted 07/25/1983.)
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CITY COUNCIL POLICY
INSTALLATION OF ACCESSIBLE PEDESTRIAN SIGNALS
ISSUE:
INSTALLATION OF ACCESSIBLE PEDESTRIAN SIGNALS POLICY
PURPOSE:
The primary technique that visually impaired pedestrians use to cross streets at signalized intersections is to initiate their crossing when they hear the traffic in front of them stop, then the traffic alongside begin to move. These traffic movements correspond to the red and green intervals at the signalized intersection. The existing environment noise is often sufficient in providing information to the visually impaired while crossing streets at signalized intersections. Therefore, most signalized intersections will not require any accessible signals.
Accessible pedestrian traffic signals are used to supplement standard pedestrian activated traffic signals. They are used to assist blind and visually impaired persons and other persons with disabilities of all ages to cross at designated streets and intersections.
The purpose of this evaluation policy is to set forth factors to be used by the City of Fountain Valley Engineering Division in developing a priority listing of signalized intersection candidates to be retrofitted with accessible devices that will provide guidance for the blind community and visually impaired persons and other disabled with disabilities of all ages to cross certain streets.
If a particular signalized intersection presents difficulties for blind and visually impaired pedestrians to cross safely, this evaluation policy shall determine the consideration for installing accessible pedestrian signals.
POLICY STATEMENT:
It is the policy of the City that the retrofitting of existing traffic signals with accessible devices shall be based on factors established herein and that such measurements and computations as may be required in determining priority rating of candidate locations shall be the responsibility of the Engineering Division.
It should be noted that in special situations, an accessible traffic signal should not be installed because of the adverse affect it could have on pedestrian safety. This may be as a result of the overall traffic circulation pattern of an area, or unusual geometric conditions where accessible signals would not provide the safety benefits appropriate for the blind or visually impaired individuals to cross a street. It should also be noted that some traffic signals cannot be retrofitted with accessible traffic signals without costly modifications. Retrofitting of traffic signals with accessible devices shall be subject to approval by the City Engineer.
Important: Accessible signals are utilized to help properly trained blind and visually impaired travelers recognize when a walk signal is operating in a given direction. An accessible signal may enhance the safety of blind travelers in two ways:
Lessens the chance of a blind or visually impaired pedestrian misjudging when the walk phase is operating, thereby lessening the chance of accidentally crossing against a
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signal.
Helps blind or visually impaired pedestrians recognize immediately when the walk phase begins, permitting them to cross the street in a timely fashion, thereby lessening the chance of being in the intersection when the signal changes.
It is important to recognize that the accessible signal does not and cannot assure the blind or visually impaired pedestrians that there will be no potential traffic conflicts while crossing when the audible signal is operating. In particular, the blind or visually impaired traveler should be aware of at least four possible conflicts.
Vehicles may still be clearing the intersection when the accessible signal comes on.
Vehicles may fail to stop for the red light. This is particularly common for motorists attempting to enter on a yellow light.
Motorists may stop and make a right turn on red while watching traffic on their left, but may fail to notice pedestrians on their right.
Vehicles may have right and left turns on the same phase as the pedestrian.
Because of these potential conflicts, it is important that the blind or visually impaired traveler exercise due caution for his or her well-being when crossing a street, whether or not it is equipped with an accessible signal. It is especially important that blind or visually impaired travelers be properly trained by an approved representative from the Advisory Committee for Persons with Disabilities in safe travel techniques on the public right-of-way.
EVALUATION PROCEDURE
The following basic considerations and evaluation factors should be utilized to determine whether a location is eligible to be a candidate for accessible signals and to determine its relative position on the priority list. An evaluation team consisting of an orientation-mobility specialist appointed by the City of Fountain Valley Advisory Committee for Persons with Disabilities, a blind or visually impaired traveler, and a City of Fountain Valley traffic engineer will conduct evaluation and scoring of factors.
The Advisory Committee for Persons with Disabilities will provide candidate locations. The City Engineer shall approve all locations prior to installation. Candidate locations will be evaluated by means of the sample evaluation sheet attached and must score a minimum of 30 points to warrant consideration for installation.
1. BASIC CONSIDERATIONS
Accessible signals normally will be considered for installation only if the following conditions are met:
Intersection must be signalized.
Signals must be reasonably capable of retrofitting with existing equipment. New equipment should be limited to devices directly related to the accessible signal.
Location must be suitable to installation of audible signals, in terms of surrounding land use, noise level, and neighborhood acceptance.
There must be a demonstrated need for the accessible signal device. (See “Evaluation Factors.”)
2. EVALUATION FACTORS
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The following factors shall be used to establish a priority listing for potential accessible traffic signal candidates. Candidate locations will be arranged in priority order of those with the highest total points (60 points maximum) on top and then in descending order. Individual factors will be scored 1 to 5, with 1 for the lowest point evaluation, to 5 for the highest.
Locations, which score fewer than 30 points, accumulated over 12 categories, would generally not be considered for immediate installation.
As with the installation of any traffic control device, engineering judgment must be exercised. Any candidate location rating high on the evaluation form as the result of high ratings in categories where pedestrian usage is low should not receive a higher priority than a location with a similar rating where pedestrian, particularly blind or visually impaired pedestrian, activity is high.
A. Intersection Safety
1. Accident Records: Past pedestrian accident experience at the intersection will be used as an indication of potential safety performance. Points will be based on pedestrian accidents reported by the Police Department for the latest three consecutive years.
PEDESTRIAN ACCIDENTS PERIOD POINTS
1 3 Years 1
2 3 Years 2
3 3 Years 3
4 3 Years 4
5 or more 3 Years 5
2. Intersection Configuration: The number of approaches to an intersection and their geometric configuration (offset, skewed, etc.) affect the ability of the blind and visually impaired persons crossing the roadway. In particular, traffic at 3-leg intersections tends not to provide adequate audible clues for the blind to permit them to effectively judge the signal phases.
CONFIGURATION POINTS
4-leg right angle intersection 1
3-leg tee intersection 2
3 or 4-leg skewed intersection 3
4-leg offset intersection 4
Other complex or multiple leg intersections 5
Note: Intersections with 5 or more legs will require special design.
3. Width of Crossing: Wider streets are more difficult for blind or visually impaired travelers to cross. If each leg of the intersection has a different width, points will be assigned on
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the basis of the widest street on which pedestrians are permitted to cross. Crossing width will be the “curb to curb” street width. Islands and medians will be included in the total crossing distance. Blind pedestrians have difficulties interpreting traffic clues at medians and islands. All signal timing in the City of Fountain Valley is calculated to accommodate the full crossing at an average rate of 4 feet per second. Divided streets with or without a pedestrian signal actuator in the median will be handled as a single crossing, with the width measured across the entire street.
WIDTH OF MAJOR
CROSSING POINTS
63 feet or less 1
64 – 83 feet 2
84 – 92 feet 3
93 – 103 feet 4
104 or more 5
4. Vehicle Speed: The speed of approaching traffic reflects the ability of approaching traffic to stop for a pedestrian clearing the intersection as the lights change. Accessible signals help blind or visually impaired pedestrians get a timely start at the beginning of the walk phase, thereby permitting clearing the intersection in a timely manner. Points are assigned on the basis of the 85th percentile speed (critical speed) on the fastest approach leg. More points are assigned on the basis of higher speeds.
SPEED RANGE POINTS
0 – 30 1
31 - 35 2
36 - 40 3
41 - 45 4
> 45 5
B. Pedestrian Usage
The visually impaired, persons with disabilities, and senior citizens share travel characteristics with the sighted population in that they go to public places, business, social, educational and medical facilities. At the same time they have special needs. For example, they may have a greater reliance on public transportation than sighted persons. Accessible signals should be placed with the view of improving mobility of all persons and making more facilities accessible to them. Proximity of signals to these facilities may assure a greater degree of utilization.
1. Proximity to Facilities for the Visually Impaired: This includes the Department of Rehabilitation, Social Security offices, various facilities for the persons with disabilities, and various facilities for the blind or impaired. Special consideration may be given to senior citizens’ complexes or public housing facilities that have one or more blind or visually impaired persons in residence. Points are assigned on the basis of blocks or
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distance (1 block equals 400 feet) from proposed accessible signal site to subject facility. More points are assigned in proportion to their relative proximity.
2. Proximity to Key Facilities Utilized by all Pedestrians (Visually impaired and Sighted):
This includes medical, educational, social, recreational, shopping, commercial, business, public and governmental facilities. Points are assigned on the basis of blocks or distance (1 block equals 400 feet) from proposed accessible signal site to subject facility. In case of multiple facilities, points will be assigned on the basis of the closest facility.
PROXIMITY POINTS
4 to 6 blocks 1
3 blocks 2
2 blocks 3
1 block 4
At subject facility 5
3. Access to Public Transit: Because blind and visually impaired persons rely heavily upon public transportation, special consideration will be given to those proposed accessible signal sites that have heavy general use, serves any of the facilities indicated above, (Ref. B-1 and B-2), or serves as a transfer point, and serves two (2) or more transit routes within a one-block walking distance. Transit stops usually occur in pairs on both sides a given street, so the number of transit stop pairs are tallied. a) Number of transit stop pairs and/or transit routes within one block of proposed audible signal site.
NUMBER OF ROUTES AND STOPS POINTS
1 - 2 Routes and 1 Stop pair 1
3 or more Routes and 1 Stop pair 2
1 - 2 Routes and 2 Stop pairs 3
3 or more Routes and 2 Stop pairs 4
3 or more Routes and more than 2 Stop
pairs 5
PROXIMITY POINTS
4 to 6 blocks 1
3 blocks 2
2 blocks 3
1 block 4
At subject facility 5
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b) Passenger usage is based upon the total passengers boarding and debarking each day at a transit stop or transfer point within a one-block walking distance.
C. Traffic Conditions
Vehicle volumes, traffic distribution, traffic congestion and flow characteristics may assist or impede the blind or visually impaired traveler in crossing an intersection. Such pedestrians can function best when crossing signalized intersections that are at right angles with a moderate, but steady, flow of traffic through the intersection on each leg and with a minimum of turning movements (right or left turns). Traffic that stops on each leg during each signal cycle is particularly helpful. Traffic that is either light, or very heavy, or erratic in its flow makes it difficult for the visually impaired traveler to pick up audible clues as to whether the light is red or green. In such cases, accessible signals will assist in determining when it is possible to cross the street. Points may be assigned by the evaluation team based upon their perception of the relative importance of each of these factors (which are not necessarily dependent upon the total average daily traffic).
Candidate locations may score up to a maximum of 5 points for each of the following factors depending upon overall traffic distribution:
BOARDING AND DEBARKING/DAY POINTS
10 - 25 1
26 - 50 2
51 - 100 3
101 - 150 4
> 150 5
HEAVY TRAFFIC FLOW VEHICLES PER DAY POINTS
2000 – 2999 1
3000 – 3999 2
4000 – 4999 3
5000 – 5999 4
Approach traffic on all legs in
excess of 2000 VPH during
any peak hour
> 6000 5
LIGHT TRAFFIC FLOW VEHICLES PER DAY POINTS
800 – 899 1
700 – 799 2
600 – 699 3
500 – 599 4
Approach traffic on all legs is
less than 900 VPH during any
one hour period between 6 AM
and 6 PM
< 500 5
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D. Mobility Evaluation
An orientation and mobility (O-M) specialist, shall evaluate each intersection being considered for accessible signals. Based on the judgment of the O-M specialist and the City Traffic Engineer, additional points may be assigned based on observed or special conditions not adequately covered by any of the previous factors.
Audible Signals at New Signal Installations
Audible signals normally will not be installed as part of a new signal installation. However, new signal locations will be eligible for retrofitting on a priority basis along with other existing signal locations covered under this policy. ____________________________ City Clerk (Adopted December 4, 2001.)
UNEVEN TRAFFIC FLOW POINTS
Platoon or approach traffic flow may
not coincide with the signal phasing on
any leg, thus making it difficult for the
visually impaired to determine the
appropriate signal phase.
0 - 5
MOBILITY EVALUATION POINTS
Mobility and miscellaneous
factors 0 - 5
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CITY COUNCIL POLICY
MEASURE M – COMPREHENSIVE PHASING PROGRAM
ISSUE:
MEASURE M – COMPREHENSIVE PHASING PROGRAM
PURPOSE:
In accordance with the requirements for “Local Transportation Ordinance Number 2: The Revised Traffic Improvement and Growth Management Ordinance” (Measure “M”), the City of Fountain Valley hereby establishes the following mandates for Comprehensive Phasing.
POLICY STATEMENT:
The City of Fountain Valley shall:
A. Ensure that the seven year Capital Improvement Program (CIP) will guarantee that infrastructure is added as development proceeds. The CIP shall correlate infrastructure improvements to land use with specific emphasis on circulation capacity.
B. Establish the requirement that building and granting permits shall be approved and issued in a manner that assures implementation of required transportation improvements.
C. Develop a plan to specify the order of improvements and the phasing of development based on, although not limited to, mitigation measures adopted in conjunction with E.I.R., negative declarations and similar environmental analysis.
D. Ensure that conditions of new development require that specific transportation improvements need to maintain appropriate levels of service standards as specified dates based on the issuance of granting building permits. ____________________________ City Clerk (Date adopted June 15, 1993.)
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CITY COUNCIL POLICY
MEASURE M – DEVELOPMENT MITIGATION PROGRAM
ISSUE:
MEASURE M – DEVELOPMENT MITIGATION PROGRAM
PURPOSE:
In accordance with the requirements for “Local Transportation Ordinance Number 2: The Revised Traffic Improvement and Growth Management Ordinance” (Measure “M”), the City of Fountain Valley hereby establishes the following mandates for Development Mitigation.
POLICY STATEMENT:
The City of Fountain Valley shall:
A. Ensure that all new development pay its fair share of the cost associated with that development, including regional traffic mitigation.
B. Collect the current traffic mitigation payment per the approved mitigation fee program.
C. Funds collected through the Developer Impact Payment earmarked for traffic mitigation payment shall be placed in a special fund reserved for traffic mitigation.
D. Traffic mitigation fees may be reduced if the developer provides land dedication or traffic improvements which further the objectives of
Measure M.
E. Ensure that new Measure M revenues shall not be used to replace private developer funding which has been committed for any project or normal subdivision obligation. ____________________________ City Clerk (Adopted June 15, 1993.)
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CITY COUNCIL POLICY
MEASURE M – PERFORMANCE MONITORING PROGRAM
ISSUE:
MEASURE M – PERFORMANCE MONITORING PROGRAM
PURPOSE:
In accordance with the requirements for “Local Transportation Ordinance Number 2: The Revised Traffic Improvement and Growth Management Ordinance” (Measure “M”), the City of Fountain Valley hereby establishes the following mandates for Performance Monitoring.
POLICY STATEMENT:
The City of Fountain Valley shall:
A. Monitor levels of services at all intersections identified by a Traffic Analysis to be impacted by measurable traffic as a result of development.
B. Monitoring levels of service at all intersections designated on the County’s Master Plan of Arterial Highways as Major/Major Arterial Highway Intersections within the City of Fountain Valley which are not included as on the Congestion Management Plan Highway System. More specifically, this includes the following intersections:
1) Brookhurst Street/Warner Avenue
C. Collect data for and monitor the levels of service as described in Sections A & B at a minimum of every two years.
D. Ensure through this Program an acceptable level of service at the intersections described in Sections A & B is maintained in accordance with the City’s Level of Service Standard “D” as established in the City’s Growth Management Element of the General Plan.
E. Ensure through this Program that road improvements and/or funding are provided to mitigate impacts of new development.
F. Phase development to ensure that improvements and/or funding are provided to mitigate impacts of new development.
The City of Fountain Valley does not intend to suspend development if, through the provisions of this Program, monitoring and computing levels of service indicate that ambient growth not related to the provisions of Sections A & B is the cause for a deficiency. In that case, the City of Fountain Valley will include improvements in its 7-Year Capital Improvement Program to mitigate the deficiency caused by ambient growth and require development to make improvements and/or payment to mitigate development’s impacts.
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____________________________ City Clerk
(Date adopted June 15, 1993.)
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CITY COUNCIL POLICY
NAMING OF CITY PARKS & RECREATION FACILITIES
ISSUE:
NAMING OF CITY PARKS & RECREATION FACILITIES
PURPOSE:
To establish guidelines for the City to name City parks. This policy will provide Staff with the responsibility for recommending names of all public parks and recreation facilities within the corporate limits of the City of Fountain Valley. The Community Services Department will review all recommended names and make its recommendations to the City Council for review and final adoption.
LEGAL OVERVIEW:
(This is a short description of the pertinent bills, laws and or other legal references pursuant to which the policy is being enacted and the application to the proposed policy.) POLICY STATEMENT:
A statement of the City Council of the City of Fountain Valley adopting certain policy, objectives and principles, as a guide for the naming of public parks and recreation facilities to:
1. Establish a uniform procedure regarding the name of existing and future parks and recreation facilities which will be appropriate and assure community compatibility.
2. Name parks and recreation facilities so they will be easily identified and compliment the area in which they are located.
3. Encourage the dedication of land or funds for public recreation use by individual or groups.
PROCEDURE
1. All neighborhood parks adjacent to school shall be named after the school.
2. All community and neighborhood parks not adjacent to schools may be named according to their geographical location. ____________________________ City Clerk (Republished January 16, 2007.)
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CITY COUNCIL POLICY
NEIGHBORHOOD TRAFFIC MANAGEMENT
ISSUE:
NEIGHBORHOOD TRAFFIC MANAGEMENT
PURPOSE:
Citizens periodically express concerns regarding residential traffic issues, mainly speeding.
Traffic calming techniques include the use of police enforcement, radar speed trailers, residential (25 mph) speed limit sign posting, stop signs, speed humps, raised medians, traffic diverters, chokers, roundabouts or traffic circles, cul-de-sacs, turn restrictions, use of one-way couplets, and variations and combinations of many of these elements.
POLICY STATEMENT:
Considering all available information and the experiences in Fountain Valley, the City Council hereby establishes a policy regarding Neighborhood Traffic Management Plans to include the following features:
1. Involvement of the well-established Neighborhood Watch program. Like reporting criminal activities to protect the quality of the neighborhoods, residents can also utilize this program to identify traffic problems and assist the City in responding to their needs.
This approach has been discussed with the Neighborhood Watch correspondent with the City and endorsed. This will afford the residents the opportunity to be involved in a “hands-on” capacity to maintain and improve the “quality of life” in their own neighborhoods.
The concept of the Neighborhood Watch involvement, or Traffic Watch, is to utilize similar reporting strategies for crime issues for traffic issues. A form that is currently being used is a “Crime Report.” This same form could be utilized as a “Traffic Report.” Citizens would actually report an undesirable traffic situation on this form, including information about the vehicle, and submit it to their district captain, who would in turn forward on to the City. In this way, residents will gain an awareness of who the violators are and when they are present. Through community involvement and public relations campaigns, it is anticipated that many undesirable traffic situations will be resolved with less City intervention.
2. Use of the radar speed trailers. This is a program currently in use. It is very effective in alerting motorist of the residential speed limit of 25 mph and their actual driving speed as they pass the trailer. This educational process is very important to remind people of their sometimes complacent driving habits and the need to correct these habits.
3. Special enforcement. The Police Department will be able to gather information from the community through the proposed Traffic Watch program. This will assist them in
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selecting the most appropriate time to use active enforcement to affect the most change. Additionally, use of the radar trailer with follow-up enforcement has proven to be effective and is expected to continue to be effective.
No other elements, including installation of roadway features or additional traffic control devices is proposed as part of the Neighborhood Traffic Management Plan policy. ____________________________ City Clerk (Date adopted July 7, 1998.)
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CITY COUNCIL POLICY
PERMIT PARKING SYSTEM
ISSUE:
PERMIT PARKING SYSTEM
PURPOSE:
Permit parking is a drastic solution and will be used only when the parking intrusion problem is severe and all other possible remedies have been unsuccessful. (SEVERE implies strongly critical, consistent, and condemnatory.)
LEGAL OVERVIEW:
The City Council may establish permit parking districts by resolution. The resolution specified in Title 10, Chapter 44, Section 079 of the Fountain Valley Municipal Code shall designate the boundaries of the permit parking district and shall specify the nature of the parking limitations which apply within the district.
POLICY STATEMENT:
Definitions
For purposes of this policy, a “district” shall mean one or more “blocks,” as established by resolution in accordance with this policy. A “block” shall mean both sides of the street located between two intersecting streets without interruption by any other intersecting street on either side.
Petition Procedure
Once the Director of Public Works or his authorized representative receive, from an eligible resident, an application for the establishment of a permit parking district, the Director of Public Works and his staff shall review the application for validity and feasibility of the proposed permit parking district. If it is determined by the Director of Public Works and his staff that permit parking is the only way to solve the parking problem, the neighborhood must demonstrate that it strongly supports permit parking. A petition to the Director of Public Works requesting permit parking must be presented by an eligible resident and signed by at least 75% of the property owners within the proposed block. Accordingly, at least one block of the residential area must meet the requirements for the installation of permit parking. Once the petition is received and verified, the Director of Public Works and his staff will work with residents to determine the boundaries of the proposed permit parking district and the time of day that permit parking is to be in effect. If the boundaries of the proposed parking district are altered in any way from the original petition subsequent to resident-city consultations, then it shall be incumbent that the resident submitting the original application presents to the City a new petition encompassing the new proposed district and following the same 75% rule. Subsequently, City staff will present the permit parking proposal to the City Council for approval. City Council approval is not guaranteed by a petition containing at least 75% approval. The proposal for permit parking could be rejected for any
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reason by the City. If approved by City Council, signs will be installed and permits issued for the qualified block(s) that establish the district. Additional permit parking in the district will be instituted on a block-by-block basis, by petition, and following the same 75% rule.
Petition Requirements & Verification Procedure
The resolution specified in Title 10, Chapter 44, Section 079 of the Fountain Valley Municipal Code, provides that parking restrictions imposed pursuant to this Code shall apply to any block within the permit parking district only after a petition, signed by the owners of seventy-five percent (75%) or more of the residential lots abutting such block have filed a petition with the Director of Public Works or his authorized representative expressing their desire for such parking restrictions. The City shall determine the adequacy of the petition in accordance with a one residence, one vote rule and with the following standards:
1. In the case of property owned by co-owners, the signature of both co-owners on the petition shall be required but shall count as only one vote.
2. In the case of property owned by a partnership, the signature of all partners on the petition shall be required but shall count as only one vote.
3. Ownership shall be determined by reference to the latest available tax assessment roll, or by such proof of subsequent acquisition of title as may be provided to the City by an owner(s).
Non-Residential Users
The resolution, specified in Title 10, Chapter 44, Section 079, may specify the parking limitations applicable to the sides of streets adjacent to the property of non-residential users within the permit parking district and the entitlement of non-residential users to parking permits. Provisions have been made for non-area residents who, as professionals, or family members, are caring for residents within the permit parking area. Please contact the City in this respect. Permit parking districts adjacent to or directly affecting non-residential users shall be created with care and concern to not create undue hardship upon either the non-residential or residential user. Individual cases involving non-residential users shall be addressed at the time a permit parking district potentially affecting a non-residential user is considered.
Special Event or Circumstance Permit Parking
The City Council shall adopt a resolution at its first meeting in January of every year regarding establishment of permit parking districts for areas impacted by special events, specifically annual events scheduled at Mile Square Park/Fountain Valley Recreation and Cultural Center, or any planned temporary condition that would cause undue hardship on residential areas abutting, surrounding, or in close proximity to such condition. Said resolution may be modified at any time thereafter to include unforeseen special events or temporary conditions.
Said resolution shall list all approved annual events, specify blocks or districts within which permit parking restrictions shall apply, and establish fees for permit parking as outlined below.
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Appropriate signs shall be erected and permits distributed a minimum of seventy-two (72) hours prior to any enforcement of such district and its associated parking restrictions.
Creation of special event or circumstance permit parking districts shall be performed with care and concern to adequately serve the affected community based on anticipated impacts generated by a specific special event or circumstance.
Signs
Upon the establishment of a permit parking district, the Director of Public Works or his authorized representative shall cause appropriate signs to be erected in the district, indicating thereon the parking limitation applicable to the district and the exemption therefrom of vehicles with permits.
Exemption for Permit Holders & Permit Display Rules
The existing parking restrictions in effect for street sweeping or any other activity shall not be altered in any way as a result of creating a permit parking district. The parking limitations in effect within a permit parking district shall not apply to vehicles for which a parking permit pertaining to that district has been issued, provided the permit is displayed in the following manner:
a) A parking permit issued (other than a guest parking permit) shall be permanently affixed to the left rear bumper of the vehicle for which it was issued. b) Guest parking permits shall be displayed by hanging them from the vehicle’s rear view mirror.
Issuance of Permits
Applications to obtain permits to park within a permit parking district may be made by any adult resident within such district who is licensed to drive a registered vehicle. Such applications shall be filed with the Chief of Police or his authorized representative. Unless otherwise prescribed by the resolution establishing the district, the number of permits per residence shall be limited to the number of registered vehicles at said residence up to a maximum of four (4) permits (exclusive of guest parking permits) for any single dwelling unit. Any person aggrieved by the decision of the Chief of Police may appeal such decision to the City Manager, whose decision on the matter shall be final.
Guest Parking Permits
Unless otherwise prescribed in the resolution establishing a permit parking district, each residence holding at least one parking permit shall be entitled to receive one (1) guest parking permit for each resident permit purchased from the City. A resident may issue a guest parking permit to any guest of such resident. Any vehicle for which the guest parking permit has been issued shall be exempt from the parking limitations within the district during the period for which it is valid, provided such permit is displayed in the manner described in this policy. In the event that additional guest parking permits are required for special circumstances, the Chief of Police may authorize the issuance of special guest parking permits. These permits are valid for twenty-four hours from the time of issuance and are not reusable.
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Duration of Permits
a) Residential parking permits issued shall be valid for a period of one year, subject to conditions and limitations set forth by this policy. Upon expiration, permits may be renewed at the office of the Chief of Police in the same manner and for the same fee previously administered, unless otherwise amended by resolution.
b) No residential parking permit shall be transferable from the permit holder to any other person or from one vehicle to another.
c) Any permit issued shall automatically expire upon the termination of the permit holder’s residence in the designated permit-parking area. In addition, any residential parking permit shall automatically expire when the permit holder no longer owns nor regularly uses the vehicle for which the permit was issued.
d) The City Council may establish, by resolution, an expiration date for all outstanding residential and guest parking permits if the City Council determines that an unacceptable number of permits are being used by non-residents of the designated permit-parking areas or that permits are being used in a manner inconsistent with the purposes of this policy.
Emergency Permits
The Chief of Police shall have discretionary power, in case of emergency, to issue to any person a parking permit for a period not exceeding three (3) consecutive days. Such permit(s) shall be written and no fee shall be charged therefore.
Exempt Vehicles
The following vehicles are exempt from the parking restrictions applicable to any permit parking district:
1. Repair, maintenance, refuse collection, realtors, utility, fuel, delivery and service vehicles used in the course of business.
2. Vehicles owned or operated by any governmental agency, or contractor of a governmental agency, being used in the course of business.
3. Emergency life support and health care vehicles being used in the course of business. ____________________________ City Clerk (Adopted March 2, 1993.)
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RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY ESTABLISHING A PERMIT PARKING DISTRICT IN TRACT NO. __________.
WHEREAS, pursuant to Title 10, Chapter 44, Section 079 of the Fountain Valley Municipal Code, City Council of the City of Fountain Valley is authorized to adopt a resolution establishing Permit Park Districts wherein parking restrictions apply to all vehicles except vehicles which have been issued park permits or are otherwise exempt pursuant to said title; and WHEREAS, this City Council finds and determines that the residential streets in Tract No. _____ as listed below, are in need of a Permit Parking District in order to protect their integrity against the intrus of vehicular parking from nearby (source of nuisance, e.g., apartment complexes, schools, etc.); and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FOUNT VALLEY, as follows:
1. A Permit Parking District in Tract No. _______ is hereby established to consist of that are the City of Fountain Valley bound on the north by (street name), on the east by (street name), on the so by (street name), and on the west by (street name). Said district extends to and includes all streets as lis below. Said district does not extend to or include (area identification if any) (see attached map).
2. The parking restriction imposed pursuant to said Title 10, Chapter 44, Section 079 and resolution shall apply to all streets and blocks listed below within the Permit Parking District described abo
3. No person, unless exempted in said system, shall stop, stand, or park any vehicle at any t on any portion of any street listed below within the Permit Parking District described above upon which si have been erected indicating the permit parking restrictions without prominently displaying a parking pe in said vehicle, pursuant to said Title 10, Chapter 44, Section 079.
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4. The parking restriction imposed pursuant to said Title 10, Chapter 44, Section 079 and resolution shall be in effect from _______________, 20__ to _________________, 20__.
5. Fees for said District are hereby established as follows:
The following are the streets that comprise the Parking Permit District in Tract No. _____ upon wh parking is restricted by provisions of Title 10, Chapter 44, Section 079.
Street Limits of Permit Parking
1. 2.
3. PASSED and ADOPTED this _______ day of _____________, 20__.
ATTEST: ______________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ______________________________ City Attorney
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CITY COUNCIL POLICY
RECYCLING AND CONSERVATION EFFORTS
ISSUE:
PROMOTION OF RECYCLING AND CONSERVATION EFFORTS
PURPOSE:
The purpose of this policy is to establish recycling guidelines to promote the use of products made with recycled materials, and to recycle the City of Fountain Valley waste stream to minimize the amount of material sent to the landfill for disposal, and to be a model to other government agencies showing how maximizing recycling and reuse of material is an integral part of progressive waste management practices use towards achieving environmental protection, energy conservation, and social and economic development.
POLICY STATEMENT:
1. Promote the use of products made with recycled material. a. Purchase products made with recycled material over other products made with virgin material if the overall cost is not more than 5% over the otherwise lowest responsible bid, meets required specifications, and can be accommodated within the budgeted amount. b. Whenever possible, eliminate prohibitions or limitations against recycled products in bid specifications unless safety standards require such limitations. c. When buying recycled material, explore incentives such as bulk purchases and piggyback purchase and state preference for recycled products in purchasing procedures. d. Research the most recent uses of recycled asphalt, solvents, construction materials, and other products that could be purchased in support of City operations and projects.
2. Promote recycling, reuse of material, and waste reduction within the City. a. Purchase office paper containing a minimum of 25% post-consumer waste. b.a. Whenever possible, use electronic correspondence, electronic report review, and double-sided copying.
c.b. Whenever possible, purchase reusable, non-disposable products. d.c. Whenever possible, do not purchase products that cannot be recycled, including glossy paper and products made from Styrofoam, etc. ____________________________ City Clerk (Date adopted October 2, 1990XXX, 2026.)
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CITY COUNCIL POLICY
SCHOOL CROSSING GUARD
ISSUE:
SCHOOL CROSSING GUARD POLICY
PURPOSE:
To assist the local school districts in providing adult crossing guards for elementary school pedestrians when necessary to ensure their safe crossing of major arterials along the “Suggested Route to School.”
POLICY STATEMENT:
It is the policy of the City of Fountain Valley to assist the local school districts in providing adult crossing guards for elementary school pedestrians when necessary to ensure their safe crossing of major arterials along the “Suggested Route to School.” The assignment of the school crossing guards at designated crossings shall be based on the following criteria:
1. School crossing guards will be provided only on arterial highways.
2. Whenever possible, the school children will be encouraged to cross the arterial highways at signalized intersections.
3. School crossing guards will be provided at locations that meet warrants based upon the most recent standards available at the time of evaluation. ____________________________ City Clerk (Adopted October 15, 1985.)
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CITY COUNCIL POLICY
SIDEWALK INSPECTION, REPAIR AND/OR REPLACEMENT
ISSUE:
SIDEWALK INSPECTION, REPAIR AND/OR REPLACEMENT POLICY
PURPOSE:
This policy establishes procedures for the inspection, repair, and replacement of damaged sidewalks.
POLICY STATEMENT:
Public sidewalks are subject to damage from tree roots and settling soil conditions, and when so damaged may constitute a safety hazard for pedestrian traffic. Each fiscal year the City Council appropriates specific funding for sidewalk repair and replacement. Repair and replacement of the damaged portions of sidewalk will be accomplished by the Field Services Divisions and/or by the Engineering Division through capital improvement projects. Staff will complete the sidewalk repair or replacement and abate the potential hazardous condition according to the following policy:
3. Sidewalk inspections will be conducted by Streets Division Personnel so that every 24 months the entire City will be completely inspected. Damaged sidewalks will be identified and categorized and a schedule for sidewalk repair or replacement will be developed.
4. A sidewalk location needing repair shall be marked with fluorescent paint (or other paint that provides a sufficient contrast) to warn the public of a known trip hazard. If the repair is delayed, paint should be reapplied as needed to maintain visibility.
5. The repair schedule will be categorized on the severity of the hazard as follows:
a) 0” - 1” lift: Sidewalk will be scheduled for grinding maintenance. b) 1” - 2” lift: Sidewalk will be scheduled for ramping maintenance, grinding maintenance, and/or replacement. If damage is from tree roots, the tree will be root pruned and a protective barrier shall be installed to prevent future sidewalk damage. If root pruning is not a viable alternative the City will proceed in accordance with paragraph f.
c) > 2” lift not caused by a tree: Sidewalk will be scheduled for ramping maintenance, grinding maintenance, and/or replacement.
d) > 2” lift caused by a tree: Tree will be removed and the City will repair or replace the deficient sidewalk and/or curb and gutter. A tree from the City’s approved tree list will be planted as a replacement of the removed tree (see Tree Maintenance, Removal, and Reforestation Policy). e) In situations where root pruning may not be a viable alternative due to the size, structure or other conditions of the tree, the parkway tree shall be removed prior to ramping/replacing the
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damaged sidewalk. A tree from the City’s approved tree list will be planted as a replacement of the removed tree (see Tree Maintenance, Removal, and Reforestation Policy). f) When damage to a sidewalk is considered a hazardous condition, temporary repairs shall be made to relieve the immediate hazard and the location will be placed on the priority list accordingly.
3. All removal and replacement of parkway trees will be in accordance with the “Tree Maintenance, Removal and Reforestation Policy.” ____________________________ City Clerk (Procedure modified February 5, 2008.)
(Procedure modified 12/10/2007.)
(Procedure established 06/1988.)
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CITY COUNCIL POLICY
TRAFFIC CONTROL DEVICES
ISSUE:
TRAFFIC CONTROL DEVICES
PURPOSE:
These guidelines establish the requirements for traffic signals, stop signs, and other traffic control devices.
POLICY STATEMENT:
To be truly effective, a traffic control device should meet established warrants and follow these basic requirements:
1. Fulfill a need;
2. Command attention;
3. Convey a clear, understandable meaning;
4. Command the respect of road users;
5. Give adequate time for proper response; and,
6. Provide smooth traffic flow with minimum delay and a maximum degree of safety.
The indiscriminant placement of traffic devices has been shown to create a lack of credibility, disrespect for traffic devices, and in some cases, a deterioration of an otherwise safe condition. ____________________________ City Clerk (Republished January 16, 2007.)
(Modified (new date).)
(Originally adopted 11/19/1974.)
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CITY COUNCIL POLICY
TREE MAINTENANCE, REMOVAL, AND REFORESTATION
ISSUE:
TREE MAINTENANCE, REMOVAL, AND REFORESTATION POLICY
PURPOSE:
This policy establishes guidelines and procedures needed to provide for the care, maintenance, removal, replacement, protection, and reforestation of parkway trees in order to promote the health, safety, welfare, and quality of life for all City residents, businesses, and visitors. The property owner owns the parkway tree and is responsible for its watering, maintenance, and removal of weeds and debris around the tree. The City controls only the right of way between the curb and private property line for street, sidewalk, and utility purposes, but does not own the land. The City does, however, trim the parkway trees only for the purpose of maintaining the appropriate clearance for pedestrians and vehicular traffic.
POLICY STATEMENT:
GOALS:
The City’s Tree Program provides a number of tree services through the City’s Landscape Division and private contractor(s). These services include scheduled and unscheduled trimming, root pruning, removal, replacement, reforestation, inspection, pest control, and emergency response within the public right-of-way. City and contractor personnel receive continual training in tree trimming/pruning, removal, planting, and pest control practices utilizing Best Management Practices (BMP) in accordance with the Department of Pesticide Regulation. City staff and/or contractor employees are certified arborists and/or certified tree workers. The City’s Tree Maintenance, Removal, and Reforestation Policy create the following goals:
1. Establish and maintain an optimal number of trees through proper inspection, maintenance, trimming/pruning, removal, replacement and reforestation;
2. Maintain trees in a safe and healthy condition through good arboricultural practices;
3. Establish and maintain an optimal level of age and species diversity;
4. Promote conservation of tree resources;
5. Provide reforestation of parkway trees;
6. Provide suitable locations for and select, situate, and maintain trees to minimize hazard, nuisance, hardscape damage, and maintenance costs, with special consideration given to compatibility in commercial areas with regard to aesthetics and signage visibility;
7. Centralize tree management under one department to ensure the consistent enforcement of policies;
8. Foster citizen support for the City’s Tree Program and encourage good tree management on privately owned properties through public education.
One of the conditions of approval for the development and construction of residential tracts within the City was a requirement to plant a minimum of one parkway tree in front of every residential address.
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As part of the City’s dedication to maintaining a safe and healthy urban forest, the City annually budgets for the reforestation through the City’s Tree Program. The number of trees planted per year may vary depending upon the budget and/or from success in securing tree planting grants.
Sustaining a City tree population with a minimum density of 95 percent will create a desirable level of tree population density and contribute to an optimal number of trees. The number of trees planted per year may be accelerated by expanding the budget and/or through successful tree planting grants.
An optimal number of trees will be further achieved by planting City approved tree species from the City’s Authorized Tree List that provide the greatest canopy spread the tree site can accommodate.
Approved species will be compatible for the area in which they are planted and will not have a root structure that is invasive or otherwise damaging to public/private facilities such as curb, gutter, sidewalks, driveways, water/sewer laterals, and roadway. Obtaining optimal number of trees will also provide the highest level of economic, environmental, and sociological benefits to the residents of Fountain Valley.
Planting for reforestation of the City is another element of the Tree Program that is necessary to fill vacant sites and to replace tree removals. When a tree planting occurs at a vacant site or as a replacement of a dead tree in the public right-of-way, property owner will be responsible for all related cost per current City Fee Schedule.The type of species/variety of tree to plant may be selected from the City’s Authorized Tree List.
BENEFITS:
The benefits for properly maintained and healthy parkway trees include:
Reduction of surface temperatures;
Reduced soil erosion and runoff;
Release of oxygen into the atmosphere;
Absorption of carbon dioxide and other greenhouse gases; Increased aesthetics;
Provision of habitats for natural urban species.
GENERAL:
Parkway trees can become hazardous to pedestrian and/or vehicular traffic, as well as cause damage to water/sewer laterals, curbs, gutters, roadways, driveways and sidewalks. In such cases, property owners may request, or City staff may recommend, removal of the undesirable parkway tree from the Director of Public Works. The City’s arborist will evaluate the condition of the tree in relationship to its surroundings and may make a recommendation that the tree be removed and replaced with a more compatible species from the City’s Authorized Tree List.
PARKWAY TREE DEFINITION:
Unacceptable Parkway Trees
Some mature trees are unacceptable as parkway trees due to the damage they cause to sidewalks, curbs, gutters, roadways, and sewer lines. Removing unacceptable trees will reduce ongoing and recurring maintenance costs to the City. When the City determines a parkway tree is unacceptable,
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the City will remove unacceptable parkway trees and plant a new tree at no cost to the resident.
Undesirable Parkway Trees
Undesirable parkway trees in most cases should be removed and replaced with a City approved tree.
There may be instances where an undesirable parkway tree adds to the street scene and neighborhood aesthetics. These neighborhood benefits may warrant working around some of these trees providing they are not creating extensive damage especially to the curb, gutter, or street. To preserve street scenes and neighborhood aesthetics in areas that may have undesirable trees in the parkway, sidewalks will be ground, ramped or replaced to otherwise accommodate these trees.
Unauthorized Parkway Trees
The City's authorized parkway tree list identifies species appropriate for the space and height restrictions of a parkway. Trees planted in the parkway without a City permit or that are not on the approved tree list are not suitable for a parkway due to damage caused to curbs, gutters, roadways, and private sewer laterals. Significant cost is incurred by the City from repairing the damage to sidewalks, curbs, and gutters. Unauthorized trees also pose hazards that may be created to pedestrians using the sidewalks adjacent to the parkway trees. Trees that would not be otherwise authorized for planting nor on the City's authorized tree list but were previously approved or appeared on a prior approved tree list, will not be considered unauthorized under this program. Replacing unauthorized trees with appropriate species will reduce recurring maintenance and repair cost to the City.
Through the Program, a 30-day notice of violation (Notice) is sent to residents with unauthorized or undesirable parkway tree(s) requiring replacement within 30 days with a tree from the City's authorized tree list. If a resident removes their own tree, stump, and roots, they can have an approved parkway tree planted by the City based on the current Fee Schedule. If the resident does not comply with the Notice, the City will remove the unauthorized or undesirable tree and plant an approved tree at the resident's expense. The cost of removing an unauthorized or undesirable parkway tree and replacement with an approved species is proposed at the full cost recovery.
Unwanted Parkway Trees
The removal and replacement of parkway trees that are acceptable but unwanted by residents will not be covered under the proposed Program. With City approval, residents may choose to remove and replace the acceptable parkway tree with a different approved species at the full cost of recovery.
The City, at its cost, reserves the right to remove and replace any unacceptable or undesirable parkway tree when one or more of the aforementioned conditions have occurred. All trees will be planted in accordance with the City's Standard Plans and the species of tree will be selected from the City's Authorized Tree List.
PROPERTY OWNER REQUESTED TREE REMOVAL:
Tree removals requested by residents will be considered for approval by the Director of Public Works, when one or more of the following occurs:
A. When one or more of the tree categories listed above exist wherein tree removal is necessary;
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B. When a property owner has demonstrated, to the City’s satisfaction, that a tree in the parkway has caused damage to a private sewer/water line or other public substructures which cannot be repaired without tree removal;
C. When any of the above occurs and the City has budgeted funds available or other funding is identified to accomplish all work necessary, including but not limited to, tree removal, parkway/right-of-way repairs, and tree replacement.
The City will assist property owners in the removal and replacement of undesirable parkway trees as follows:
Complete Tree Removal and Replacement by the Property Owner: Following approval by the Director of Public Works, the Property Owner removes the parkway tree and stump, disposes the plant waste material, and plants a City approved parkway tree from the City’s Authorized Tree List and in accordance with City Standards. Any parkway tree removal and/or replacement that does not comply with this Policy will be removed and replaced at the Property Owner’s expense.
Parkway tree inspection will be paid for by the Property Owner per current City Fee Schedule.
New Tree Installation: Property owner or a licensed arborist contractor cuts down the tree, removes the stump and the roots, and disposes the plant waste material. Property owner selects a replacement tree from the City’s Authorized Tree List which is then planted by the City and paid for by the property owner.
New tree installation will be paid for by the Property Owner per current City Fee Schedule.
Stump Removal and Tree Replacement: Property owner or a licensed arborist contractor cuts down the tree and disposes the plant waste material; City removes the stump and plants a tree from the City’s Authorized Tree List.
Stump removal and tree replacement paid will be for by the Property Owner per current City Fee Schedule.
Complete Tree Removal and Replacement by the City: The City removes the parkway tree and stump, disposes the plant waste material, and plants a tree from the City’s Authorized Tree List.
Complete tree removal and replacement paid for by the Property Owner per current City Fee Schedule.
NOTE: The City of Fountain Valley will repair damage to irrigation lines caused by removal of a tree or root structure by the City. The City of Fountain Valley is not responsible for the repair or replacement of any parkway turf, plant material, hardscape, or structures in connection with the removal of a tree or root structures.
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The resident shall water the tree as needed and keep the tree free from overgrown weeds or any obstructions contrary to public safety. The resident shall not intentionally damage, injure, or kill the tree or replace with a tree not on the City’s Authorized Tree List. ____________________________ City Clerk (February 17, 2009.)
(Tree Replacement and Removal Policy revised, including implementation of the Parkway Tree Match Program, 03/03/2009.)
(Price change as of 03/03/2009.)
(Tree Replacement and Removal Policy revised, including implementation of the (Reforestation Policy, 02/05/2008.)
(Price change as of 8/22/2007.)
(Tree Replacement.)
(Tree Replacement and Removal Policies combined and modified 01/19/2007.) (Tree Removal Policy Adopted 06/07/1988.)
(Tree Replacement Policy Adopted 12/07/1982.)
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CITY COUNCIL POLICY
WATER SHUT OFF POLICY
ISSUE:
WATER SHUT OFF POLICY
POLICY STATEMENT:
1. Application of Policy. This Policy on Residential Water Service (this “Policy”) shall apply to all City accounts for residential water service and other services billed on the same bill. Except as provided in Section 6, this Policy shall not apply to any accounts for non-residential service. To the extent this Policy conflicts with any other rules, regulations, or policies of the City (except ordinances), this Policy shall control.
2. Contact Information. For questions or assistance regarding your water bill, the City’s Customer Service staff can be reached at (714) 593-4420. Customers may also visit the Customer Service desk in City Hall during business hours. City Hall is located at 10200 Slater Avenue.
3. Billing Procedures. Water service charges are payable to the City on a bi-monthly basis. All bills are due and payable upon receipt. Any bills not paid by the due date stated on the bill are considered delinquent. A water bill shall be considered delinquent if it is not paid at the water billing department, in person or by mail, by 5 p.m. on or before the twentieth day after the bill is mailed to the customer. If the twentieth day falls on a Saturday, Sunday or legal holiday, the bill shall be considered delinquent after 5 p.m. of the next working day. As a penalty, customers who do not pay their water bills within the required time shall be assessed a 7% late charge or $10.00, whichever is greater.
4. Discontinuation of Water Service for Nonpayment. If a bill is delinquent for at least 60 days, the City may discontinue water service to the service address and impose a disconnection service fee.
4.1.Written Notice to Customer. The City will provide a mailed notice to the customer of record at least 20 days before discontinuation of water service. The notice will contain:
a) the name and address of the customer;
b) the amount of the delinquency;
c) the date by which payment or payment arrangements must be made to avoid discontinuation of service;
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d) the procedure by which the customer may initiate a complaint or request an investigation or appeal concerning service or charges;
e) a description of the procedure by which the customer may request an alternative payment arrangement, which may include an extension, amortization, or alternative payment schedule;
f) the procedure for the customer to obtain information on financial assistance, if applicable; and
g) the telephone number where the customer may request a payment arrangement or receive additional information from the City.
4.2.Written Notice to Occupants or Tenants.
a) The City will also send a notice to the occupants living at the service address at least 20 days before discontinuation of water service under the following circumstances:
(1) the City furnishes individually metered service to a single-family dwelling, multiunit residential structure, mobile home park, or farm labor camp and the owner, manager, or operator is the customer of record, and such owner, manager, or operator is not also the occupant of the residence; or (2) the customer of record’s mailing address is not the same as the service address. The notice will be addressed to “Occupant,” will contain the information required in Section 4.1 above, and will inform the residential occupants that they have the right to become customers of the City without being required to pay the amount due on the delinquent account. Terms and conditions for occupants to become customers of the City are provided in Section 9 below.
b) If the City furnishes water through a master meter in a multi-unit residential structure, mobile home park, or permanent residential structures in a labor camp and the owner, manager, or operator is the customer of record, the City will make a good faith effort to inform the occupants, by means of written notice posted on the door of each residential unit at least 20 days prior to termination, that the account is in arrears and the service will be terminated on a date specified in the notice. If it is not reasonable or practicable to post the notice on the door of each unit, the City will post two (2) copies of the notice in each accessible common area and at each point of access to the structure or structures. The notice will inform the residential occupants that they have the right to become customers of the City without being required to pay the amount due on the delinquent account. The notice will also specify what the occupants are required to do in order to prevent termination of, or
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to reestablish service; the estimated monthly cost of service; the title, address, and telephone number of a representative of the City who can assist the occupants in continuing service; and the address or telephone number of a qualified legal services project that has been recommended by the local county bar association.
Terms and conditions for occupants to become customers of the City are provided in Section 9 below.
4.3.In-Person or Telephonic Notice. The City will also make a reasonable, good faith effort to contact the customer of record or adult person living at the premises of the customer in person or by telephone at least seven (7) business days before discontinuation of service. The City will offer to provide in writing a copy of this Policy and to discuss options to avert discontinuation of water service for nonpayment, including the possibility of an extension or other payment arrangement.
4.4.Posting of Notice at Service Address. If the City is unable to make contact with the customer or an adult person living at the service address in person or by telephone, the City will make a good faith effort to leave a notice of imminent discontinuation of residential service and a copy of this Policy in a conspicuous place at the service address. The notice and copy of this Policy will be left at the residence at least 48 hours before discontinuation of service. The notice will include:
a) the name and address of the customer;
b) the amount of the delinquency;
c) the date by which payment or payment arrangements must be made to avoid discontinuation of service;
d) the procedure for the customer to obtain information on financial assistance, if applicable; and
e) the telephone number where the customer may request a payment arrangement or receive additional information from the City.
4.5.Circumstances Under Which Service Will Not Be Discontinued. The City will not discontinue residential water service for nonpayment under the following circumstances:
a) During an investigation by the City of a customer dispute or appeal as set forth in Section 5.1 below; or
b) During the period of time in which a customer’s payment is subject to a CityPage 289 155
approved extension, amortization, or alternative payment schedule under Section 7 below, and the customer remains in compliance with the approved payment arrangement.
4.6.Circumstances Under Which Service Through a Master Meter Will Not Be Discontinued. If the City furnishes water through a master meter in a multi-unit residential structure, mobile home park, or permanent residential structures in a labor camp and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the City will not discontinue residential water service for nonpayment under the following circumstances:
a) When the customer’s indebtedness is owed to another public agency, or when the obligation represented by the delinquent account or indebtedness was incurred with any public agency other than the City’s water utility;
b) If a delinquent account relates to another property owned, managed, or operated by the customer;
c) If a public health or building officer certifies that termination would result in a significant threat to the health or safety of the residential occupants or the public.
4.7.Special Medical and Financial Circumstances Under Which Services Will Not Be Discontinued.
a) The City will not discontinue water service if all of the following conditions are met:
i. The customer, or a tenant of the customer, submits to the City the certification of a licensed primary care provider that discontinuation of water service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided; ii. The customer demonstrates that he or she is financially unable to pay for residential service within the City’s normal billing cycle. The customer is deemed financially unable to pay during the normal billing cycle if: (a) any member of the customer’s household is a current recipient of an assistance program (i.e. CalWorks, CalFresh, Medi-Cal, Supplemental Security Income, etc.) or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200% of the federal poverty level; and
iii. The customer is willing to enter into an alternative payment arrangement with respect to the delinquent charges.
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b) For any customers who meet all of the above conditions, the City shall offer the customer one of the following options, to be selected by the City in its discretion: (1) an extension of the payment period; (2) amortization of the unpaid balance; or (3) an alternative payment schedule. The City’s Finance Director or designee will select the most appropriate payment arrangement, taking into consideration the information and documentation provided by the customer, as well as the City’s payment needs.
c) The customer is responsible for demonstrating that the conditions in subsection (a) have been met. Upon receipt of documentation from the customer, the City will review the documentation and: (1) notify the customer of the alternative payment arrangement selected by the City and request the customer’s signed assent to participate in that alternative arrangement; (2) request additional information from the customer; or (3) notify the customer that he or she does not meet the conditions in subsection (a).
d) The City may discontinue water service if a customer who has been granted an alternative payment arrangement under this section fails to do any of the following for 60 days or more: (a) pay his or her unpaid charges by the extended payment date; (b) pay any amortized amount due under the amortization schedule; (c) pay any amount due under an alternative payment schedule; or (d) pay his or her current charges for water service. The City will post a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the City.
4.8.Time of Discontinuation of Service. The City will not discontinue water service due to nonpayment on a Saturday, Sunday, legal holiday, or at any time during which the City’s office is not open to the public.
4.9.Restoration of Service. Customers whose water service has been discontinued may contact the City by telephone or in person regarding restoration of service. Restoration shall be subject to payment of: (a) any past-due amounts, including applicable interest or penalties; (b) any reconnection fees, subject to the limitations in Section 8.1, if applicable; (c) and a security deposit, if required by the City.
5. Procedures to Contest or Appeal an Incorrect Bill.
5.1.Time to Initiate Complaint or Request an Investigation. A customer may initiate a complaint or request an investigation regarding the amount of a bill within five (5) days of receiving a
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disputed bill. For purposes of this Section 5.1 only, a bill shall be deemed received by a customer five (5) days after mailing and immediately upon e-mailing. A customer may initiate a complaint or request an investigation by calling (714) 593-4420 or by submitting a written request and supporting documentation to City of Fountain Valley, 10200 Slater Avenue, Fountain Valley, CA 92708.
5.2.Review by City. A timely complaint or request for investigation shall be reviewed by the Finance Director or designee, who shall provide a written determination to the customer within 14 days of receipt of the dispute. The review will include consideration of whether the customer may receive an extension, amortization, or alternative payment schedule under Section 7. The City may, in its discretion, review untimely complaints or requests for investigation; however, such complaints or requests are not subject to appeal.
5.3.Appeal to City Manager. Any customer whose timely complaint or request for an investigation pursuant to this Section 5 has resulted in an adverse determination may appeal the determination to the City Manager by filing a written notice of appeal with the City Clerk within 14 days of the City’s mailing of its determination. If an appeal is received by the City Clerk within fourteen days of the date the reply was mailed, then the appeal shall be forwarded to the City Manager. The City Manager shall review the appeal and mail or deliver a written determination letter to the affected customer or representative. The City Manager’s decision is final.
5.4.Customer Responsibility for Actual Water Use. Customers are responsible for all actual water use on the property, including leaks. This includes a responsibility to maintain irrigation systems on the property and household plumbing such that any leaks are detected and repaired in a timely manner so as to reduce the risk of usage due to leaks. Customers may, however, be eligible for a water loss adjustment as provided in Section 6 below.
6. Water Loss Adjustments
6.1.Request for Adjustment; Required Documentation. Notwithstanding Section 5.4, the City may, upon written request of a customer, adjust a customer's bill in the case of loss of water due to circumstances beyond the customer’s reasonable control, such as a mechanical malfunction, blind leak, theft of water, vandalism, unexplained water loss or other unusual or emergency conditions. Adjustments will not be made for faucet leaks. The customer’s request must be supported by repair bills or other appropriate documentation. This Section 6 applies to both residential and non-residential accounts of the City.
6.2.Determination by City. The determination of whether an adjustment is granted will be made at the sole discretion of the City’s Finance Director or his or her designee; the determination will be final and is not subject to appeal. In making the determination, the City may take into
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account the cause of water loss, the customer’s opportunity, if any, to detect it, any negligence or fault of the customer in connection therewith, and the promptness with which the water loss was discovered, stopped and repairs made. For the customer to be eligible for an adjustment, the will consider the following factors after investigation:
a) There was no evidence that the excessive use was due to the intentional or negligent act of the customer, or non-responsiveness of the customer to warning signals such as higher water and/or sewer bills, leak notifications, visible water, or other factors that should have made the customer reasonably aware of the existence of a leak;
b) No third party responsible for water loss at the customer’s property can be pursued for reimbursement by the customer;
c) After being notified by the City via heightened billing, letter, 0, or by any other means, the customer took prompt and reasonable action to ascertain the cause of the excessive use and to correct it; and
d) The customer took corrective action immediately upon discovering or being notified of a leak, and provided the City with satisfactory evidence that the leak was repaired (copy of repair service bill, etc.).
6.3.Calculation of Adjustment Amount. If granted, the adjustment of the customer’s bill will be calculated as follows:
a) The amount of the excess cost will be determined by taking the difference between the total cost of utility service for the bill in question less the total cost of utility service for the same billing period the previous year. b) The Customer is responsible for paying one-half of the amount calculated in subsection (a). The City will credit the customer’s account the other one-half of the amount; provided, however, that the City shall under no circumstance provide a credit in excess of $300.
6.4.Additional Conditions.
a) Water loss adjustments will be limited to one adjustment every five (5) years.
The five-year period begins at the end of the last billing period for which a water loss adjustment was granted.
7. Extensions and Other Alternative Payment Arrangements.
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7.1.Time to Request an Extension or Other Alternative Payment Arrangement. If a customer is unable to pay a bill during the normal payment period, the customer may request an extension or other alternative payment arrangement described in this Section 7. If a customer submits his or her request within 13 days after mailing of a written notice of discontinuation of service by the City, the request will be reviewed by the Finance Director or designee. At his or her own discretion, the City’s Finance Director or designee may consider requests for an extension or other alternative payment arrangement described in this Section 7 either before or after the 13 day period referenced in this Section 7. City decisions regarding extensions and other alternative payment arrangements are final and are not subject to appeal to the City Manager. As an inducement to enter into a payment arrangement, or for other purposes benefiting the City, the City’s Finance Director or designee may at his or her own discretion waive one or more late charges applied to an account.
7.2.Extension. If approved by the City, a customer’s payment of his or her unpaid balance may be temporarily extended for a period not to exceed six (6) months after the balance was originally due. The City’s Finance Director or designee shall determine, in his or her discretion, how long an extension shall be provided to the customer. The customer shall pay the full unpaid balance by the date set by the City and must remain current on all water service charges accruing during any subsequent billing periods.
7.3.Amortization. If approved by the City, a customer’s payment of his or her unpaid balance may be amortized over a period not to exceed 12 months, as determined by the City’s Finance Director or designee, in his or her discretion. If amortization is approved, the unpaid balance will be divided by the number of months in the amortization period, and that amount will be added to the customer’s monthly bills for water service until fully paid. During the amortization period, the customer must remain current on all water service charges accruing during any subsequent billing periods. At the City’s Finance Director’s or designee’s sole discretion, a period longer than 12 months may be used for the amortization period to avoid undue hardship based on the circumstances of the individual case.
7.4.Alternative Payment Schedule. If approved by the City, a customer may pay his or her unpaid balance pursuant to an alternative payment schedule that will not exceed 12 months, as determined by the City’s Finance Director or designee, in his or her discretion. If approved, the alternative payment schedule may allow periodic lump-sum payments that do not coincide with the City’s established payment date or may provide for payments made more or less frequently than the City’s regular payment date. During the period of the alternative payment schedule, the customer must remain current on all water service charges accruing during any subsequent billing periods.
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7.5.Failure To Comply. The City may terminate water service if a customer who has been granted a payment arrangement under this Section 7 fails to make a payment due under the payment arrangement, and at least 60 days have passed since the original bill became delinquent.
Under such circumstances, the City may terminate service after posting only a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the City.
8. Specific Programs for Low-Income Customers.
8.1.Reconnection Fee Limits and Waiver of Interest. For residential customers who demonstrate to the City a household income below 200% of the federal poverty line, the City will limit any reconnection fees during normal operating hours to $50, and during non-operational hours to one hundred fifty dollars ($150). The limits will only apply if the City’s reconnection fees actually exceed these amounts. These limits are subject to an annual adjustment for changes in the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) beginning January 1, 2021.
8.2.Qualifications. The City will deem a residential customer to have a household income below 200% of the federal poverty line if: (a) any member of the customer’s household is a current recipient of an assistance program (i.e. CalWorks, CalFresh, Medi-Cal, Supplemental Security Income, etc.) or (b) the customer declares under penalty of perjury that the household’s annual income is less than 200 percent of the federal poverty level.
9. Procedures for Occupants or Tenants to Become Customers of the City.
9.1.Applicability. This Section 9 shall apply only when the property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and the customer of record is not the resident using water on the property and has been issued a notice of intent to discontinue water service due to nonpayment.
9.2.Agreement to City Terms and Conditions of Service. The City will make service available to the actual residential occupants if each occupant agrees to the terms and conditions of service to become a customer of the City and meets the requirements of the City’s rules and regulations. Notwithstanding, if one or more of the occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the City, or if there is a physical means, legally available to the City, of selectively discontinuing service to those occupants who have not met the requirements of the City’s rules and regulations, the City shall make service available to the occupants who have met those requirements.
9.3.Verification of Tenancy. To be eligible to become a customer without paying the amount due
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on the delinquent account, the occupant shall verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, at the discretion of the City.
9.4.Methods of Establishing Credit. If prior service for a period of time is a condition for establishing credit with the City, residence and proof of prompt payment of rent for that period of time is a satisfactory equivalent.
9.5.Deductions from Rental Payment. Pursuant to Public Utilities Code Section 10009.1(d), any occupant who becomes a customer of the City pursuant to this Section 9 and whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic payment each payment period all reasonable charges paid by the occupant to the City for residential water service during the preceding payment period. This subsection is intended only as a statement of existing law under Public Utilities Code Section 10009.1(d); it does not establish any independent legal rights or duties on landlords or tenants and is not enforceable by the City.
10.Third Party Notification Service for Seniors and Dependent Adults. The City will make available, to residential customers who are 65 years or older, or who are dependent adults (as defined in Welfare and Institutions Code Section 15610(b)(1)), a third-party notification service whereby the City will attempt to notify a person designated by the customer to receive notification when the customer’s account is past-due and subject to termination. The notification will include information on what is required to prevent termination of service. The City will mail the notification to the designated third party at least 10 days before termination of service. To participate, the customer must submit a request for third-party notification in an email to the City’s Finance Director or designee. The notification service does not obligate the third party to pay any overdue charges, nor shall it prevent or delay termination of service.
11.Language for Certain Written Notices. All written notices under Section 4 and Section 7.5 of this Policy shall be provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by 10% or more people within the City’s service area.
12.Other Remedies. In addition to discontinuation of water service, the City may pursue any other remedies available in law or equity for nonpayment of water service charges, including, but not limited to: securing delinquent amounts by filing liens on real property, filing a claim or legal action, or referring the unpaid amount to collections.
13.Discontinuation of Water Service for Other Customer Violations. The City reserves the right to discontinue water service for any violations of City ordinances, rules, or regulations other than
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nonpayment.
14.Fees and Charges Incurred. Except as otherwise expressly stated in this Policy, any fees and charges incurred by a customer under any other rules, regulations, or policies of the City, including, but not limited to, delinquent charges, shall be due and payable as set forth therein.
15.Decisions by City Staff. Any decision which may be taken by the City’s Finance Director under this Policy may be taken by his or her designee. ____________________________ City Clerk
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COMMUNITY DEVELOPMENT
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CITY COUNCIL POLICY
AFFORDABLE HOUSING LOAN SUBORDINATION POLICY
ISSUE:
AFFORDABLE HOUSING LOAN SUBORDINATION
PURPOSE:
To memorialize the terms and conditions that City or Agency would allow the subordination of its affordable housing loans for the purpose of refinancing existing debt that is in a superior lien position.
LEGAL OVERVIEW:
The policy has been reviewed by the City Attorney.
POLICY STATEMENT:
The City of Fountain Valley and the Fountain Valley Agency for Community Development will consider a loan subordination request from an individual borrower who has a affordable housing related loan with either the City of Fountain Valley or the Fountain Agency for Community Development with the following guidelines:
1. The property must be owner occupied as the principal residence.
2. Homeowner is refinancing for a better interest rate or term of loan. Rate must be a fixed rate, fully amortized loan. Loan must be a fully documented loan; stated income or no-doc loans will not be allowed.
3. The new refinance loan amount must not exceed the amount of the original first mortgage loan at the time of assistance received from the City/Agency.
4. Housing cost must remain affordable, must not exceed 30% for low income and 35% for moderate income.
5. Lender fees such as closing costs may be included into the new loan.
6. The City/Agency loan will be in no lower than second position.
7. The new loan plus the City/Agency loan cannot exceed 95% loan to value ratio.
8. The City/Agency will agree to subordinate for a refinance no more than once in a twelve month period.
9. A Request for Notice (this document alerts the City/Agency to any default of the senior lien) must be recorded for the new loan and mailed to the City/Agency.
10. The City/Agency will charge a subordination document processing fee. The fee is established in the City fee schedule and is currently $110.
11. The City/Agency will require a minimum of 5 working days to review the documentation and 5 working days to prepare and execute the documentation.
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12. The City Manager or Agency Executive Director is authorized to execute the subordination documents on behalf of the City/Agency. If necessary the Agency Chair and/or the Mayor may sign without further authorization if subordination is made consistent with this policy.
13. AII original requirements and restrictive conditions in the City/Agency loan agreement shall remain in place.
14. Any exception to the Subordination Policy must be made in writing and approved by the City Manager or Agency Executive Director. ____________________________ City Clerk (Approved: August 18, 2009.)
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CITY COUNCIL POLICY
DEVELOPMENT AGREEMENT MITIGATION FEE
ISSUE:
DEVELOPMENT AGREEMENT MITIGATION FEE
POLICY STATEMENT:
The City Council has a policy of providing services to developments within the City. The existing service level for Police, Fire, Public Works, etc., was based upon the existing population and land use pattern. With new development there is a need to provide additional services. Therefore, the City Council will assess new developments a Development Mitigation Fee to cover the City's increased costs for new and extended services.
At the time a developer contacts the City regarding property for development, either residential, commercial or industrial, staff will establish the calculation for the fee regarding the Development Mitigation. Unless the City Council specifies to the contrary, the fee shall equal 3% of the cost of construction in accordance with the computed values on the City building permit. The fee shall be processed by means of a Development Agreement between the developer and the City. Moreover, the fee shall be paid prior to the issuance of building permit for the development.
The fee shall be applied to residential, commercial, and industrial development.
EXCEPTIONS AND CONSTRAINTS:
Notwithstanding the foregoing, application of this Development Mitigation Fee shall be subject to the following constraints or conditions:
1. That churches and charity (non-profit public benefit) organizations planning to build facilities for their direct and primary use shall be exempted from paying the Development Mitigation Fee as determined to be eligible for such exemption by the Planning Commission; for example, a gymnasium for a Boys' and Girls' Club or a sanctuary for a church.
2. That the Development Mitigation Fee shall be applied only to projects containing 10,000 sq. ft. or more of gross floor area.
3. That the Park Fee shall be waived for residential developments with a payment of a Development Mitigation Fee. The minimum Development Mitigation Fee shall be at least $1,750.00 for each residential unit. For residential developments where the Development Mitigation Fee is not at least $1,750.00 per unit. Otherwise, the Development Mitigation Fee for residential developments shall be the same as other developments, 3% of construction costs.
This formula may be modified, at Council discretion, by consideration of other factors related to the project.
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____________________________ City Clerk
(Amended January 21, 1986.)
(Adopted 02/05/1985.)
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CITY COUNCIL POLICY
DISPLAY OF FLAGS
ISSUE:
CITY’S DISPLAY OF FLAGS
PURPOSE:
To establish guidelines for the display of flags on City of Fountain Valley-owned flagpoles, flag-stands, and attached to other City-owned property.
POLICY:
The City’s flagpoles and flag-stands are not intended to serve as a forum for expression by the public.
Only the City may place or fly a flag on City’s flagpoles, flag-stands, or City-owned property except as expressly provided by Fountain Valley Municipal Code Chapter 21.25 (“Signs on Public Property”).
As an expression of the City’s own government speech, the City shall only fly flags of government agencies recognized by the United States and located within the United States including, but not limited to:
The Flag of the United States
The Flag of the State of California
The Flag of the City of Fountain Valley
The flags of Official Sister Cities of Fountain Valley
The City shall also display the POA/MIA flag which is recognized as a national symbol by Congress. (32 U.S.C. § 902.) ____________________________ City Clerk
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CITY COUNCIL POLICY
HOME IMPROVEMENT PROGRAM
ISSUE:
HOME IMPROVEMENT PROGRAM
PURPOSE:
The City of Fountain Valley has designated a significant portion of its housing and community development resources to the goal of preserving and enhancing the City’s existing housing stock. In support of this goal, the City has offered home improvement grants, rebates, and low-interest loans to eligible households under its Home Improvement Program.
POLICY STATEMENT:
See attached statement. ____________________________ City Clerk (September 17, 1996, Resolution 8708.)
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HOME IMPROVEMENT PROGRAM CITY COUNCIL POLICY
I. BACKGROUND
For over twenty years, the City of Fountain Valley has designated a significant portion of its housing and community development resources to the goal of preserving and enhancing the City's existing housing stock. In support of this goal, the City has offered home improvement grants, rebates and low-interest loans to eligible households under its Home Improvement Program.
In implementing the Home Improvement Program, the City of Fountain Valley utilizes various federal, state and local funding sources. These include, but are not limited to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) program funds made available by the United States Department of Housing and Urban Development (HUD), and Redevelopment Twenty Percent Housing Set-Aside funds provided by the Fountain Valley Agency for Community Development (Agency).
The City Council Policy governing the City's Home Improvement Program has remained essentially unchanged since the inception of the program. This policy replaces all previously existing policies, establishes new program guidelines for the Home Improvement Program, and designates the method by which the programs can be altered in the future.
II. PROGRAM OBJECTIVES
As part of its ongoing housing and community development efforts, the City of Fountain Valley has established a Home Improvement Program. The goals and objectives of this program are to:
A. Preserve and enhance the City's existing housing stock; and B. Provide decent housing and a suitable living environment for persons and families of low- and moderate-incomes.
III. HOME IMPROVEMENT PROGRAMS
B. Single-Family Home Improvement Programs
The City of Fountain Valley will offer a variety of home improvement financing programs (e.g. grants, rebates and low-interest loans) designed to assist low- and moderate-income homeowners with the means to make necessary improvements to their homes. Eligible homeowners may initially utilize assistance under any two of the three primary programs (grants, rebates and low-interest loans).
Repeat assistance will be allowed for rebates and loans once every seven years, however, the
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balance of all outstanding loans may not exceed $50,000. Grants are available on a one-time basis only, except for emergency grants, which may be utilized as often as needed if the homeowner has already exhausted all other forms of eligible assistance. Participation in the City's Single-Family Home Improvement Programs is also subject to the additional requirements described in Sections IV through VII of this policy.
1. Grant Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $5,000
Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: One time only per household per address
Special
Requirements:
None
2. Lead Hazard Reduction Grant Program
Target Income
Group:
<120% of area median income (MFI)
Maximum Amount: $7,500
Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Receipt of recurring assistance under this program is subject to participant's eligibility to receive assistance under the City of Fountain Valley Home Improvement Program.
Special
Requirements:
None
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3. Emergency Grant Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $5,000
Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Unlimited per special requirements
Special
Requirements:
May only be used to address existing zoning/building code violations, structural conditions that require immediate attention to prevent future damage to the property, and/or conditions that threaten the health and safety of the unit's occupants after homeowner has exhausted all other available forms of eligible assistance.
4. Rebate Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $5,000 (calculated at 50% of total project cost) Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Once every seven years
Special
Requirements:
None
5. Low Interest Loan Program
a. Low-Interest Deferred Payment Loans
Target Income
Group:
<120% of area median income
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Maximum Amount: $50,000
Project Location: Citywide
Security: Recorded Trust Deed I Promissory Note
Loan Rate and Term: 0% to 120% of MFI: 3% I 25 years
Note: An interest rate of ten percent (10%) will apply to the entire loan principal if the subject property is
sold/transferred within twelve (12) months of loan
origination.
Repayment
Schedule:
Flexible
Fees: 100% of fees (assessed at underwriter's cost) to be paid by borrower. (Loan fees may be wrapped into loan). $150
reconveyance charge at time of payoff.
Availability: Once every seven years, however, the principal balance of all outstanding Home Improvement Program loans may not
exceed
$50,000.
Special
Requirements:
Home Improvement Program loans must be recorded in
second position or higher except where homeowner has an outstanding City of Fountain Valley First-Time Homebuyer (FTHB) Program loan.
Credit Rating Applicants must have minimum credit score rating of fair credit to qualify for the program.
Equity The total indebtedness of all recorded liens, including the City's Home Improvement Program loan, may not exceed
ninety-five percent (95%) of the fair market value of the home after rehabilitation.
b. Low-Interest Payment Loans
Target Income
Group:
<120% of area median income
Maximum Amount: $50,000
Project Location: Citywide
Security: Recorded Trust Deed I Promissory Note
Loan Rate and Term: 0%-80% of MFI: 3% / 81%-120% of MFI: 3% $3,500 - $5,999 - 5 years
$6,000 - $14,999 – 10 years
$15,000 - $24,999 - 15 years
$25,000 - $34,999 - 20 years
$35,000 - $50,000 - 25 years
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Note: An interest rate of ten percent (10%) will apply to the entire loan principal if the subject property is
sold/transferred within twelve (12) months of loan
origination.
Repayment
Schedule:
Monthly payments / straight amortization
Fees: 100% of fees (assessed at underwriter's cost) to be paid by borrower. (Loan fees may be wrapped into loan). $150
reconveyance charge at time of payoff.
Availability: Once every seven years, however, the principal balance of all outstanding Home Improvement Program loans may not
exceed $50,000.
Special
Requirements:
Home Improvement Program loans must be recorded in
second position or higher except where homeowner has an outstanding City of Fountain Valley First-Time Homebuyer (FTHB) Program loan.
Credit Rating Applicants must have minimum credit score rating of fair credit to qualify for the program.
Equity The total indebtedness of all recorded liens, including the City's Home Improvement Program loan, may not exceed
ninety-five percent (95%) of the fair market value of the home after rehabilitation.
C. Mobile Home Improvement Programs
The City of Fountain Valley will offer grants and rebates to eligible low-income mobile home owners as needed to make necessary improvements to their mobile homes. Eligible mobile home owners may initially utilize assistance under one of the two available mobile home improvement programs.
Participation in the second program will be allowed 12 months after the date of last assistance.
Repeat assistance will be allowed for rebates once every seven years. Grants are available on a onetime basis only, except for emergency grants, which may be utilized as often as needed if the homeowner has already exhausted all other forms of eligible assistance. Participation in the City's Mobile Home Improvement Programs is also subject to the additional requirements described in Sections IV through VII of this policy.
1. Grant Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $7,000 ($9,500 if roof replacement is necessary)
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Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: One time only per household per address
Special
Requirements:
None
2. Lead Hazard Reduction Grant Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $5,000
Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Receipt of recurring assistance under this program is subject to participant's eligibility to receive assistance under the City of Fountain Valley Home Improvement Program.
Special
Requirements:
None
3. Emergency Grant Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $4,000
Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Unlimited per special requirements
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Special
Requirements:
May only be used to address existing zoning/building code violations, structural conditions that require immediate attention to prevent future damage to the property, and/or conditions that threaten the health and safety of the unit's occupants after homeowner has exhausted all other available forms of eligible assistance.
4. Rebate Program
Target Income
Group:
<80% of area median income (MFI)
Maximum Amount: $5,000 (calculated at 50% of total project cost) Project Location: Citywide
Security: None
Loan Rate and Term: N/A
Repayment
Schedule:
N/A
Fees: None
Availability: Once every seven years
Special
Requirements:
None
IV. ELIGIBILITY CRITERIA
A. Homeowner Eligibility Requirements
1. Income
Gross annual household income may not exceed either 80% or 120% of the Orange County median income adjusted for family size as provided by the U.S. Department of Housing and Urban Development (HUD). Specific maximum household annual income requirements for each program may be found under Section Ill - Home Improvement Programs of this policy.
Income will be calculated using standard methods such as tax returns, pay stubs, retirement benefit statements, etc. Credit reports are also required. If a credit report shows that the homeowners current credit liability payments combined with payment statements from other sources including credit unions or entities exceeds the reported income the application will be declined, as this is considered a financial risk.
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2. Liquid Assets
Total household liquid assets may not exceed $50,000. Liquid assets include all funds held in savings, checking, money market, brokerage and trust accounts. Assets held in Individual Retirement Accounts (IRA's), 401 (k) and other qualified deferred compensation retirement accounts, and whole life and whole life derivative insurance policies shall not be considered liquid for the purposes of this program provided that no holder of said accounts is greater than fifty-nine and one-half (59 ½) years of age. In the event that one or more account holders exceed fifty-nine and one-half (59 ½) years of age, assets held in the above mentioned types of accounts would be considered liquid.
In the event that one or more account holders exceeds fifty-nine and one-half (59 ½) years of age and the gross household income (not adjusted for business losses) is less than or equal to 30% of the Orange County median income adjusted for family size, the liquid asset limitation shall be $100,000.
3. Ownership of Real Property Other Than Primary Residence Ownership of rental property or other real estate holdings other than the household's primary residence is prohibited.
4. Tenant Income
To calculate the total income for a household income from all sources must be included. If a homeowner rents a room to a tenant the homeowner must provide a true copy of the rental agreement with the tenant or the tenant must provide a notarized statement indicating the amount of rent paid on a monthly basis. The tenant must have access to the common areas of the home including the kitchen and laundry facilities to be considered as a tenant of the home.
The monthly rent shall be added to the homeowner's income for qualifying purposes.
5. Credit Scores
Applicants must have minimum credit score rating of fair credit to qualify for the program. Credit scores must be provided by a report from one of the major reporting agencies, Equifax, Transunion or Experian.
6. Bankruptcy
Applicants who have had a bankruptcy within 24 months of applying for the City of Fountain Valley Home Improvement Program will not be eligible for the program. Applicants with extenuating circumstances may appeal these criteria.
A. Property Eligibility Requirements
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Following the determination of homeowner's eligibility pursuant to the requirements of Section IV "A" above, the homeowner must demonstrate property eligibility. To be eligible to receive Program assistance, real property will be evaluated and must meet each of the requirements set forth below:
1. Location and Type of Property
The property must be a single-family residence (e.g. condominium, townhouse, or detached singlefamily home) located within the city limits of the City of Fountain Valley.
2. Condition
The property must be in need of repairs to (i) correct existing nonconforming development standards, (ii) correct existing nonconforming local and/or state code requirements, (iii) correct existing local and/or state code violations, (iv) protect the structural integrity of the property, (v) promote neighborhood safety, (vi) improve energy efficiency, (vii) refurbish exterior and/or interior improvements, or (viii) aid the mobility of the physically disabled and/or elderly.
All repairs must qualify as eligible repairs as defined in Section V. Note: Any previous renovations done at the property without the proper building permits, that are items not covered by the Home Improvement Program, must be brought into compliance prior to participation in the Home Improvement Program. If previous unpermitted renovations are items that are normally covered by the Home Improvement Program, the cost of permitting the item and any corrections can be included in the cost of the Home Improvement Program, if the item has been completed more than five years prior to the participation in the Home Improvement Program.
3. Ownership and Owner-Occupancy .Requirements
The income eligible homeowner(s) must hold record fee simple title to the property, and must occupy the property as a principal residence.
4. Maximum After Rehabilitation Property Value (HOME Funds Only) The estimated value of the property, after rehabilitation, may not exceed ninety-five percent (95%) of the median purchase price for single-family homes in the City.
5. Equity
The total indebtedness of all recorded liens, including the City's Home Improvement Program loan, may not exceed ninety-five percent (95%) of the fair market value of the home after rehabilitation. For the purposes of this calculation, encumbrances must include the proposed principal amount of the
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Program loan requested by the eligible owner. The equity calculation will be made by comparing the sales prices of similar homes sold in the immediate vicinity of the subject property within a six month period prior to the funding of any monies from the City. If the homeowner disagrees with the established value the homeowner may at their own expense provide an appraisal from a licensed appraiser. The City will have the option to have the appraisal reviewed by a licensed appraiser.
6. Hazard Insurance
All properties must be insured with an all-risk property insurance policy in an amount equal to the full replacement value of all structures located on the property. Furthermore, all properties located within the 100-year floodplain that receive assistance under the Low-Interest Loan Program must maintain flood insurance in the amount of the improvements for the term of the loan.
7. Property/Income Tax Delinquency or Liens
All property taxes and assessments must be paid current, and the property must not have any recorded property or income tax liens or outstanding mechanics liens.
8. Outstanding Judgments and Obligations
All outstanding mortgages recorded against the subject property must be current. Furthermore, no outstanding tax liens, mechanics liens and/or judgments may be recorded against the property to be rehabilitated. All utility billing must be current.
B. Order of Priorities for Eligible Improvements
The following order of priorities will apply to all eligible improvements made under the City of Fountain Valley Home Improvement Program. All improvements listed within any given priority category must be addressed prior to the inclusion of items identified as having a lower priority.
1. Evaluation of property for lead based paint hazards and any remediation necessary;
2. Inspection and remediation of any wood destroying insects (termites).
3. Improvements needed to alleviate conditions that present an immediate threat to the health and safety of the property's occupants;
4. Improvements needed to correct existing building, zoning and public nuisance code violations not presenting an immediate threat to the health and safety of the property's occupants;
5. General property improvements needed to repair or replace broken, damaged and/or deteriorated items.
C. Eligible Improvements
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All eligible improvements must be physically attached to the property and be permanent in nature. In order to be eligible for Program assistance, the City's Housing Coordinator, or his/her designee, following an inspection of the property in accordance with Program requirements, must approve proposed improvements. All rehabilitation work must be completed by qualified, licensed, and insured contractors selected in accordance with Program procedures.
The City of Fountain Valley Home Improvement Program is designed to provide for the repair, and if necessary, the replacement of damaged, deteriorated or failing items or improvements that already exists on an eligible property. In the event that replacement of damaged, deteriorated or failing items or improvements is necessary, said items will be replaced with those of equal or like quality. The program is not designed to provide for the upgrade of single-family homes. Some eligible improvements (e.g. the replacement of flooring) are subject to materials and/ or labor cost allowances.
A description of all applicable cost allowances can be found in Appendix A of this policy.
A listing and description of fill eligible improvements, including item-specific restrictions (if applicable) is provided below:
1. Abatement of Code Violations: Any and all work including but not limited to demolition, construction, rehabilitation, replacement, and installation needed to abate violations of the City of Fountain Valley's building and municipal codes.
2. Accessibility Modifications: All modifications, alterations, or additions necessary to facilitate access and use of the home by disabled persons are permitted. These may include the installation of handicap ramps, grab bars, and accessible shower enclosures; the modification of doorways, hallways, and countertop elevations; and other adaptive measures.
3. Cabinetry: Repair, re-facing or refinishing of damaged or deteriorated cabinets, including countertops, is permitted. Replacement of cabinets is only permitted when repair, re-facing or refurnishing is not a cost effective alternative.
4. Deadbolt locks: Installation of deadbolt locks is permitted if doors are "solid core".
5. Doors/Windows: Repair and replacement of worn or damaged doors or windows is permitted with those of similar type and quality. Enlargement of door/window openings is permitted only where the existing door/window area is non-compliant with current building codes, and only to the extent needed to achieve building code compliance.
6. Driveways/Walkways: Repair or replacement of damaged or deteriorated driveways and walkways. Driveways and walkways may only be replaced with broom-finished concrete. The use of decorative stone is not permitted.
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7. Drywall/Lath and Plaster: Repair, replacement and finishing of damaged drywall/lath and plaster necessary to match the original finish is permitted.
8. Electrical: Repair and upgrading of electrical system, if required under National Electrical Code, including service panels, wiring, outlets, and switches.
Replacement of lighting fixtures and installation of security lighting is eligible subject to a $50.00 per lighting fixture cost allowance.
9. Energy conservation: Installation or replacement of insulation, weather stripping, water heater blankets, and attic ventilators. Installation of energy efficient doors and windows is allowable provided that the conditions outlined under Doors/Windows are met.
10. Fencing/Block Walls: Repair or replacement of existing fencing or block walls (in kind) is eligible. Chain link fences may however, be replaced with a wood (cedar or redwood) fence.
For fences or block walls located on a property line, only the homeowner's pro-rated cost may be included in the project.
Permission and financial participation (on a pro-rated basis) from all neighboring property owners is required. For properties with pools, the repair or installation of fences, gates and safety hardware/devices as needed to comply with Uniform Building Code requirements is permitted.
11. Flood Insurance: Payment for the first year of flood insurance (if required) as needed to insure improvements made under the City's Home Improvement Program is eligible. All costs associated with maintaining flood insurance coverage beyond the first year are to be born entirely by the homeowner.
12. Flooring: The replacement of damaged or deteriorated flooring (in kind) is permitted subject to materials and labor cost allowances outlined in Appendix A of this policy.
13. Garage Doors: The repair or replacement of garage doors, including the replacement of inoperable garage door openers and broken springs is eligible.
The installation of garage door openers where no opener is currently installed is permitted only in homes occupied by one or more disabled persons.
14. HVAC Systems: Repair or replacement of failed, failing, damaged or inoperative HVAC system components included furnaces, air conditioning compressors, forced air units, heat pumps, ducts and vents are permitted. The installation of new air conditioning equipment is not permitted except in cases where medically necessary as prescribed by a doctor.
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15. Kitchen Appliances: Repair or replacement of damaged or inoperable stoves, ovens and dishwashers is permitted subject to the materials and labor cost allowances outlined in Appendix A of this policy.
16. Landscaping: The replacement of dead sod is permitted to the extent necessary to meet minimum municipal code requirements. The planting or replacement of trees, shrubs, ground covers (other than sod), hard landscaping, and planter boxes is not permitted. All sod replacements must include the installation of an automated irrigation system.
17. Overgrown/Dead Vegetation: The trimming of overgrown vegetation and the removal of dead vegetation or living vegetation whose root system is causing structural damage are permitted. Dead vegetation, other than sod, that is removed may not be replaced.
18. Painting (exterior): Exterior painting is eligible and must be undertaken if the current condition represents a violation of the City's Public Nuisance Code as determined by the City's Code Enforcement Officer.
19. Painting (interior): Complete painting of the interior of the home is eligible.
20. Pest Control: Eradication of insect infestations and repairs to improvements damaged by insect infestation is permitted. Termite inspections and abatements must be conducted on all homes that have not been inspected during the most recent two (2) year period.
21. Plastering, siding, and stucco: Repairs (e.g. patching, filling or localized replacement) to damaged plaster, stucco or siding is permitted.
22. Plumbing/Sewer Pipes and Fixtures: Repair or replacement of leaking or damaged water/sewer pipes and fixtures (including toilets, bathtubs, shower enclosures, faucets and garbage disposals) to the extent necessary to complete rehabilitation, not customization.
Connection to municipal sewer lines is permitted.
23. Property Clean-up: Removal of overgrown vegetation and debris and trash located on the property's front, side and rear yard is permitted. Removal of excessive debris and trash from the inside of the home is permitted only where the homeowner(s) is/are physically incapable of completing such work.
24. Rain Gutters: Repair or replacement of failing rain gutters is permitted.
25. Roofing: Complete repair or replacement of deteriorated or damaged roofing is permitted.
Materials of the same type and quality as the existing roof must be used (i.e. composition shingle must be replaced by composition shingle) except where 1) different roofing materials
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are needed to match the type and quality of roofs found on a majority of homes in the immediate neighborhood, or 2) the existing roof is made of wood shake in which case a tile roof may be installed.
Roof replacements that require an engineering survey or engineered structural modifications are not permitted.
26. Room Additions: Room additions/expansions are permitted only in households with overcrowded conditions. An overcrowded household is defined as one having more than 1.5 persons per bedroom.
27. Seismic Retrofitting (mobile homes only): The repair, modification, replacement or installation of earthquake straps and/or other seismic retrofitting devices is permitted.
28. Smoke Detectors: Must be installed throughout the home as required under the Uniform Fire Code.
29. Structural Repairs/Modifications: Structural repairs/modifications are permitted to the extent that such repairs/modifications are needed to 1) correct existing structural deficiencies as defined by the Uniform Building Code; and 2) allow for improvements designed to provide accessibility to disabled persons.
30. Swimming pools and Spas: Swimming pools and spas are considered luxury items and cannot be repaired, but may be removed if they are unserviceable and a health hazard. The proper demolition permits must be obtained prior to the start of demolition. Area of the former swimming pool or spa will be filled and capped with top soil and sod. No other decorative landscaping will be included.
31. Wall Paper/Wall-Tile: The repair or replacement of damaged or torn wall paper and damaged or missing ceramic tiles is permitted. Where bathtub/shower wall tile is severely damaged or missing, homeowner may choose to replace the entire bathtub/shower area with a full fiberglass tub surround. Wall tile for tub/shower surround shall be tile of similar type and quality of the tile that is being replaced.
32. Water Heaters: Repair or replacement of deteriorated or inoperable water heaters including the repair or installation of enclosures, insulation blankets and earthquake strapping is permitted.
D. Ineligible Improvements
Ineligible improvements include, without limitation, improvements that are 1) accessory uses including, but not limited to greenhouses, patio covers, barbecue pits and outdoor fireplaces,
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bathhouses, swimming pools, saunas and hot tubs, valances, cornice boards, drapes, blinds, and indoor or outdoor furnishings; 2) any improvements not approved by the City's Housing Coordinator or his/her designee.
V. ELIGIBLE/INELIGIBLE COSTS
A. Eligible Costs
Home Improvement Program proceeds may be used only for the following eligible expenses:
1. The actual reasonable costs of materials and services necessary to complete all rehabilitation work approved by the City's Housing Coordinator or his/her designee and as set forth in the Authorized Bid List;
2. Building permits and inspection and other related fees necessary for the completion of the approved rehabilitation work;
3. Costs of loan processing, including without limitation, credit reports, property appraisals, and if necessary, preliminary title reports and recording fees; and
4. Costs of temporary relocation in connection with the rehabilitation work if required by local, state and federal laws, regulations, and/or policy.
B. Ineligible Costs.
Specific costs not eligible for payment under the City of Fountain Valley Home Improvement Program include, but are not limited to the following:
1. Materials, fixtures, or equipment of a type or quality that exceeds that customarily used in properties of the same general use as the property to be rehabilitated;
2. Free-standing appliances other than stoves, unless the need is justified as determined by the City's Housing Coordinator;
3. Purchase, installation or repair of interior or exterior home furnishings;
4. Compensation/reimbursement of owner's personal labor;
5. Compensation/reimbursement for ineligible improvements or any work not included and authorized in the Authorized Bid List or subsequent approved change orders.
VI. TERMS AND CONDITIONS OF PROGRAM ASSISTANCE
A. Maintenance/Occupancy Requirements
Assisted properties shall be maintained in compliance with all City of Fountain Valley Municipal Codes and ordinances. Assisted properties shall maintain occupancy not to exceed the maximum occupancy limits as established by the United States Department of Housing and
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Urban Development (HUD). Property owners shall not permit criminal activities to occur on the property or permit property improvements to suffer deterioration or decline, or maintain, cause to be maintained, or permit to be maintained any public or private nuisance on or about the property.
B. Hazard Insurance
Property owners receiving Program loan assistance shall maintain, throughout the term of the loan, an all-risk property insurance policy, including flood insurance if the property is located in a flood zone, insuring the property in an amount equal to the full replacement value of the structures on the property. The insurance policy or policies shall name the City of Fountain Valley as an additionally insured/loss payee.
C. Nondiscrimination
There shall be no discrimination against or segregation of any person or group of persons, on account or race, color, creed, religion, sex, marital status, national origin, or ancestry, in the selection of contractors or subcontractors to complete the rehabilitation work financed with Program assistance, or in the sale, leasing, transferring, use, occupancy, tenure, or enjoyment of assisted properties.
D. Compliance with Program Policies and Procedures
Throughout the applicable term of Program assistance, Program participants shall comply with all Program requirements and procedures as set forth in these Policies and Procedures, and as required by the Housing Coordinator, and as set forth in Grant Agreements and Loan Agreements and related attachments.
VII. PROGRAM AMENDMENT PROCEDURES
Any and all amendments to the City of Fountain Valley Home Improvement Program Policy must be approved through the following process:
A. The proposed policy amendment must be presented to the City of Fountain Valley Housing and Community Development (HCD) Advisory Board for review and the forwarding of a recommendation to the City Council; and
B. The City Council must consider and approve the proposed policy amendment.
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APPENDIX A.
CITY OF FOUNTAIN VALLEY HOME IMPROVEMENT PROGRAM
MATERIALS AND LABOR COST ALLOWANCES
(As of 10/01107)
The following materials and labor cost allowances have been established to ensure that improvements made under the City of Fountain Valley's Home Improvement Program are efficient, appropriate and equitable. These allowances may be modified at the discretion of the City's Planning Director and/or Housing Coordinator as needed to adjust to changing market conditions.
1. Flooring Materials
a. Carpet: $40.00 per square yard including installation; b. Ceramic Tile: $8.50 per square foot including installation; c. Wood/Wood Laminate: $7.50 per square foot including installation; d. Vinyl Flooring: $40.00 per square yard including installation
2. Appliances
a. Water Heaters: $650.00 including installation;
b. Dishwashers: $550.00 including installation;
c. Countertop Ranges: $650.00 including installation;
d. Self-standing stoves with oven: $750.00 including installation; e. Single built-in oven: $900.00 including installation; f. Double built-in oven: $1,400.00 including installation; g. Garbage Disposals: $200.00 including installation.
3. Garage Doors
a. Garage doors: $700 double car; $500 single car
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CITY COUNCIL POLICY
INFILL GUIDELINES FOR RESIDENTIAL DEVELOPMENT
ISSUE:
INFILL GUIDELINES FOR RESIDENTIAL DEVELOPMENT
The following is a list of recommended standards for Infill Guidelines for Residential Development.
POLICY STATEMENT:
The applicant shall undertake an extensive citizen participation program with the surrounding neighborhood, as defined by Community Development Department Staff, prior to submission to the Planning Commission.
INFILL GUIDELINES – for development of four or more lots within the same subdivision.
1. Architectural Compatibility
A. Architectural design of a new housing structure shall be architecturally compatible with the surrounding neighborhood.
B. Variety of elevations and floor plans, including one and two story units.
C. Abutting units may not utilize the same exterior elevation.
D. Staggered front yard setbacks shall be incorporated into the design of the subdivisions so no abutting units have similar front yard setbacks. If a curved street condition exists, similar setbacks may be considered.
2. Lot Coverage Permitted
A. Total lot coverage for main structure including garage, patio and room addition shall not exceed 45% (forty-five percent) of the total lot area.
3. Two Story Units
B. When new two story units are constructed abutting existing single story units, the new units shall modify the window structure and location of the windows to ensure compatibility. Methods which may be considered include:
1. Location of window.
2. Spandel or opaque glass.
3. Architectural relief of the rear of the unit.
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4. Installation of mature landscaping to the rear of the lot.
C. The floor area of the second story shall not be larger and/or equal to the area of the ground floor.
4. Perimeter Block Wall – 6 ft. block for perimeter of tract.
A. Block wall(s) shall be a minimum of 6 ft. from highest grade elevation.
B. Existing non-masonry wall and/or fence (chain link or wooden) shall be removed and construct new 6 ft. solid masonry wall.
C. Fence detail shown on preliminary grading.
D. Type of material shall be either split-face or slump-stone block.
E. Lateral walls interior-solid masonry walls shall be provided on all side and rear property lines.
5. Driveway Approach and Recreational Vehicle Access
A. All driveway approaches shall be constructed of concrete.
B. All R-1 units shall incorporate a minimum side yard of 10 ft. on the garage side.
C. Garages with setbacks of a 20 feet or less shall utilize roll up doors for all doors, with an automatic garage door opener. Garages with setbacks greater than 20 feet may utilize swing-up garage doors.
D. In the event of a three (3) car garage is adjacent to a three (3) car garage, the developer shall submit landscape plans as part of the application package. ____________________________ City Clerk
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CITY COUNCIL POLICY
PUBLIC NOTIFICATION - PLANNING & LAND USE MATTERS
ISSUE:
PUBLIC NOTIFICATION - PLANNING & LAND USE MATTERS
Government Code 6509 et. seq. (Chapter 2.7 "Public Hearings") addresses public notification for public hearings related to land use matters. Section 65091 requires that notification for all public hearings -be given to various persons including all property owners as identified on the latest equalized assessment roll within 300 feet of the subject property and a local agency may give additional notice of the hearing in any manner it deems necessary or desirable. • POLICY STATEMENT:
State law provides various minimum levels of notice that must be provided to the public prior to holding a hearing on a private development project or planning and zoning matter. The City of Fountain Valley has historically provided notice that exceeds the minimum amounts required by State law. This Policy details the City’s standards for providing enhanced notice of such projects and matters.
REQUIRED NOTICE
Notwithstanding anything in this Policy to the contrary, the minimum amount of notice shall be that which is required by State law. Anything above the minimum notice required by State law is referred to herein as “enhancing noticing.” The enhanced noticing provisions of this Policy are directive, not mandatory. The failure to provide the enhanced notice discussed in this Policy shall not void or invalidate any City action, discussion, or decision.
ENHANCEMENTS TO STATE LAW NOTICING REQUIREMENTS
Whenever a public hearing is required to be noticed in accordance with Government Code Section 65091, the following shall apply:
1. When notice is to be mailed or delivered pursuant to 65091(a)(3), the 300-foot noticing distance shall be increased to 1000 feet. The 1000-foot noticing distance provided for by this Policy shall be measured from the exterior property lines of the real property that is the subject of the hearing.
a. Notification boundaries shall include lots on both sides of interior residential streets. b. All developed property not identified on the latest equalized assessor’s tax role but for which Certificate of Occupancies have been issued by the City should be notified and addressed as “Occupant.”
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2. For a project that is located on real property that fronts an arterial street, the 1000-foot radius shall not include the width of the arterial street and shall begin on the opposite side of the street.
3. For a project that is located adjacent to freeway right-of-way, the 1000-foot radius shall not include the width of the freeway right-of-way and shall begin on the opposite side of the freeway right-of-way.
4. For a project that is located on property next to a mobile home park, notification via delivery or mail shall be provided to the occupants of each mobile home space that is located within the 1000 ft. radius in addition to the owner of the mobile home park.
5. For a project that is adjacent to a homeowners’ association, for which the names and addresses of officers of the homeowners’ association are on file with the City, all officers of said homeowners’ association shall be notified.
6. For a project that has regional significance, the Community Development Director shall provide notice to a significantly larger area as determined in his or her discretion.
7. For a project that is located within or adjacent to commercial or industrial centers, notice shall be provided to the property owner of the commercial or industrial center as well as to all commercial/industrial tenants located within the 1000-foot radius.
8. For a project that is within Mile Square Park, notice shall be the lease area perimeter of the easement.
ENHANCED NOTICE OF ALL DEVELOPMENT PROJECTS
For any development project (public or private), notice of the project, along with a brief description of the project shall be provided as below:
In the electronic Fountain Valley Newsletter, at least 10 calendar days prior to the City Council or Planning Commission meeting at which the project will be discussed or acted upon.
On City social media sites, including Nextdoor, Twitter and Instagram.
In City Manager’s or Mayor’s update messages if applicable.
Summary of notices to be placed in City Council meeting agendas
ENHANCED NOTICE OF LARGER DEVELOPMENT PROJECTS
For any development project (public or private) that is proposed to be 5 stories or more, or 60 feet in height or above (as measured from the ground adjacent to the project) (see FVMC 21.18.050), notice of any discussion or action before the City Council or Planning Commission shall be provided (as used herein, notice is considered provided on the day it is placed for pickup in the US Mail) at least 10 calendar days prior to the public meeting at which the project will be discussed or acted upon, as follows:
1. By advertisement on the Public Cable Television Authority; and
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2. By posting the item on the City’s website; and
3. By postcard to all residential properties in the City.
This Policy supersedes the previous policy on Public Notification. ____________________________ City Clerk (Date adopted: April 7, 2009.)
(Supersedes 03/21/1989.)
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City of Fountain Valley
STATEMENT OF
INVESTMENT POLICY
2025-
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CITY OF FOUNTAIN VALLEY
INVESTMENT POLICY
CONTENTS
I. INTRODUCTION ................................................1 II. SCOPE .....................................................1 III. PRUDENCE ...................................................2 IV. OBJECTIVES .................................................2 V. DELEGATION OF AUTHORITY .......................................3 VI. ETHICS AND CONFLICTS OF INTEREST ................................3 VII. INTERNAL CONTROLS ............................................4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ...4 IX. AUTHORIZED INVESTMENTS ........................................5 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES .....................10 XI. INVESTMENT POOLS/MUTUAL FUNDS .................................10 XII. COLLATERALIZATION ...........................................11 XIII. DELIVERY, SAFEKEEPING AND CUSTODY ..............................11 XIV. MAXIMUM MATURITY............................................12 XV. RISK MANAGEMENT AND DIVERSIFICATION.............................12 XVI. REVIEW OF INVESTMENT PORTFOLIO ................................13 XVII. PERFORMANCE EVALUATION .......................................13 XVIII. REPORTING .................................................13 XIX. REVIEW OF INVESTMENT POLICY ...................................14 GLOSSARY OF INVESTMENT TERMS 14
City of Fountain Valley 2025-26 Investment 1
I. INTRODUCTION
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Fountain Valley’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy shall have four primary goals:
To assure compliance with federal, state, and local
laws governing the investment of public monies under
the control of the City Treasurer.
To provide sufficient liquidity to meet normal
operating and unexpected expenditures.
To protect the principal monies entrusted to the City.
To generate the maximum amount of investment income
within the parameters of prudent risk management as
defined in this Investment Policy.
This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).
II. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
Proceeds of debt, which are governed by the investment
provisions of their specific bond indentures.
Pension and Other Post-Employment Benefit (OPEB) Trust
Funds, which are invested in accordance with the
provisions of the Trust Agreements.
Any other funds specifically exempted by the City Council.
POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on
City of Fountain Valley 2025-26 Investment 2
their respective participation and in accordance with generally accepted accounting principles.
City of Fountain Valley 2025-26 Investment 3
III. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
The Treasurer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Treasurer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.
IV. OBJECTIVES
The City’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
SAFETY. Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.
LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be
reasonably anticipated.
RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking
City of Fountain Valley 2025-26 Investment 4
into account the investment risk constraints for safety and liquidity needs.
City of Fountain Valley 2025-26 Investment 5
V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.
The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the Treasurer.
The Treasurer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.
If the City Treasurer is unavailable, then the Finance Manager, Deputy City Manager, or the City Manager shall authorize the investment transactions, in writing, prior to execution.
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.
VI. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.
Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the City Manager any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall not undertake any personal investment transactions with the same individual with whom business is conducted on behalf of the Agency.
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VII. INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall include but are not limited to: dual authorization of transactions, timely bank reconciliations and custodial safekeeping (investment securities are held by an independent financial institution and are recorded in the City’s name). Annually, an independent auditing firm shall review internal controls in conjunction with the audit of the City’s financial statements.
VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City’s Treasurer will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.
The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3- 1 (uniform net capital rule).
In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
Nationally or state-chartered banks.
Savings association or federal association (as defined in Section 5102 of the Financial Code).
The Federal Reserve Bank.
Direct issuers of securities eligible for purchase.
Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.
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All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment
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policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.
Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.
IX. AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased.
Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.
An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and issuer to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.
1. MUNICIPAL SECURITIES include obligations of the City, the State of California and any local agency within the State of California, provided that:
The securities are rated in a rating category of “A”
or its equivalent or better by at least one nationally
recognized statistical rating organization (“NRSRO”).
No more than 5% of the total portfolio may be invested in any single issuer.
No more than 30% of the total portfolio may be in Municipal Securities.
The maximum maturity does not exceed five (5) years.
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2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state
City of Fountain Valley 2025-26 Investment 10
or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
The securities are rated in a rating category of “A”
or its equivalent or better by at least one nationally
recognized statistical rating organization (“NRSRO”).
No more than 5% of the total portfolio may be invested in any single issuer.
No more than 30% of the total portfolio may be in Municipal Securities.
The maximum maturity does not exceed five (5) years.
3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
The maximum maturity does not exceed five (5) years.
4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other
instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no
limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored
Enterprises (GSEs), provided that:
No more than 25% of the total portfolio may be invested in any single Agency/GSE issuer.
The maximum maturity does not exceed five (5) years.
The maximum percent of agency callable securities in
the total portfolio will be 20%.
5. BANKER’ S ACCEPTANCES, provided that:
They are issued by institutions which have short-term
debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations
which are rated in a rating category of “A” or its
equivalent or better by at least one NRSRO.
No more than 40% of the total portfolio may be invested in Banker’s Acceptances.
No more than 5% of the total portfolio may be invested in any single issuer.
The maximum maturity does not exceed 180 days.
6. COMMERCIAL PAPER, provided that:
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The issuer is a corporation organized and operating in
the United States with assets in excess of $500
million.
The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
They are issued by corporations which have long-term
obligations rated in a rating category of “A” or its
equivalent or better by at least one NRSRO.
City may purchase no more than 10% of the outstanding
commercial paper of any single issuer.
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No more than 25% of the total portfolio may be invested in Commercial Paper. Under a provision sun setting on
January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
No more than 5% of the total portfolio may be invested in any single issuer.
The maximum maturity does not exceed 270 days.
7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state- chartered bank, a savings association or a
federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a
foreign bank, provided that:
The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
Any amount above the FDIC insured limit must be issued
by institutions which have short-term debt obligations
rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating
category of “A” or its equivalent or better by at least one NRSRO.
No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
No more than 5% of the total portfolio may be invested in any single issuer.
The maximum maturity does not exceed five (5) years.
8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
The amount per institution is limited to the maximum
covered under federal insurance.
No more than 20% of the total portfolio will be
invested in a combination of federally insured and
collateralized time deposits.
The maximum maturity does not exceed five (5) years.
9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in
accordance with California law, provided that:
No more than 20% of the total portfolio will be
invested in a combination of federally insured and
collateralized time deposits.
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The maximum maturity does not exceed five (5) years.
10. PLACEMENT SERVICE DEPOSITS, provided that:
No more than 30% of the total portfolio may be invested in a combination of qualifying placement service
deposits, including CDARS.
The full amount of each deposit along with accrued
interest must at all times be insured by the Federal
Deposit Insurance Corporation (FDIC) or the National
Credit Union Administration (NCUA).
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Under a provision sunsetting on January 1, 2031, no more than 50% of the total portfolio may be invested in
deposits through a placement service, including
Certificates of Deposit, if the Agency is a city,
district or local agency that does not pool money with
other local agencies.
The maximum maturity does not exceed five (5) years.
11. COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits, provided that:
The maximum maturity does not exceed five (5) years.
12. REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the
Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the
repurchase agreement. The Master Repurchase Agreement
will be substantially in the form developed by the
Securities Industry and Financial Markets Association
(SIFMA).
The maximum maturity does not exceed one (1) year.
13. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
The City may invest up to the maximum amount permitted by LAIF.
LAIF’s investments in instruments prohibited by or not
specified in the City’s policy do not exclude the
investment in LAIF itself from the City’s list of
allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.
14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
The issuer is a corporation organized and operating
within the United States or by depository institutions
licensed by the United States or any state and operating
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within the United States.
The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
No more than 30% of the total portfolio may be invested in MTNs.
No more than 5% of the total portfolio may be invested in any single issuer.
The maximum maturity does not exceed five (5) years.
15. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN
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SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:
The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
No more than 20% of the total portfolio may be invested in these securities.
No more than 5% of the total portfolio may be invested
in any single Asset-Backed or Commercial Mortgage
security issuer.
The maximum legal final maturity does not exceed five (5) years.
16. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter
and numerical rating provided by not less than two
(2) NRSROs; or
(ii) Have retained an investment adviser registered or
exempt from registration with the Securities and
Exchange Commission with not less than five years’
experience investing in the securities and
obligations authorized by California Government
Code, Section 53601 and with assets under
management in excess of $500 million.
No more than 10% of the total portfolio may be
invested in shares of any one mutual fund.
b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest
letter and numerical rating provided by not less
than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or
exempt from registration with the Securities and
Exchange Commission with not less than five years’
experience managing money market mutual funds with
assets under management in excess of $500 million.
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No more than 20% of the total portfolio may be
invested in the shares of any one Money Market
Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.
17. SUPRANATIONALS, provided that:
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Issues are US dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally
guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or
Inter-American Development Bank.
The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
No more than 30% of the total portfolio may be invested in these securities.
No more than 10% of the total portfolio may be invested in any single issuer.
The maximum maturity does not exceed five (5) years.
X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
State law notwithstanding, any investments not
specifically described herein are prohibited, including, but not limited to futures and options.
In accordance with Government Code, Section 53601.6,
investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
Investment in any security that could result in a zero
interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities
backed by the
U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
Purchasing or selling securities on margin is prohibited.
The use of reverse repurchase agreements, securities
lending or any other form of borrowing or leverage is
prohibited.
The purchase of foreign currency denominated securities is prohibited.
The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is
prohibited.
XI. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:
City of Fountain Valley 2025-26 Investment 19
A description of eligible investment securities,
and a written statement of investment policy and
objectives.
A description of interest calculations and how it is
distributed, and how gains and losses are treated.
A description of how the securities are safeguarded
(including the settlement processes), and how often
the securities are priced and the program audited.
A description of who may invest in the program, how
often, what size deposit and withdrawal are allowed.
A schedule for receiving statements and portfolio listings.
A statement of how/if reserves and retained earnings are utilized by the pool/fund?
A fee schedule, and when and how is it assessed.
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Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
XII. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.
COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.
REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
The securities which collateralize the repurchase
agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
Financial institutions shall mark the value of the
collateral to market at least monthly and increase or
decrease the collateral to satisfy the ratio requirement described above.
The City shall receive monthly statements of collateral.
XIII. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.
SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by
City of Fountain Valley 2025-26 Investment 21
the City from the custodian listing all securities held in safekeeping with current market data and other information.
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The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable.
XIV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.
The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.
XV. RISK MANAGEMENT AND DIVERSIFICATION
MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
The diversification requirements included in the
“Authorized Investments” section of this policy are
designed to mitigate credit risk in the portfolio.
No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.
The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
If a security is downgraded, the Treasurer will use
discretion in determining whether to sell or hold the
security based on its current maturity, the economic
outlook for the issuer, and other relevant factors.
If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be
monitored and reported monthly to the City Council.
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MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longerterm portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for
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short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
The maximum stated final maturity of individual securities in the portfolio will be five
(5) years, except as otherwise stated in this policy.
The duration of the portfolio will generally be
approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.
XVI. REVIEW OF INVESTMENT PORTFOLIO
The Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.
XVII.PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.
The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark. The market benchmark for 2020-2021 will be the Intercontinental Exchange (ICE) Bank of America Merrill Lynch (BAML) 1-5 Year U.S. Treasury/Agency Index.
XVIII.REPORTING
MONTHLY REPORTS
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Monthly transaction reports will be made available to the public and the City Council, which can be obtained from the City’s website at www.fountainvalley.org/1249/Investment-Reports.
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QUARTERLY REPORTS
The Treasurer will prepare a quarterly investment report, within 45 days after the end of the quarter, which provides full disclosure of the City’s investment activities.
These reports will disclose, at a minimum, the following information about the City’s portfolio:
1. An asset listing showing par value, cost and market value of each security, type of investment, issuer, maturity date and interest rate.
2. Transactions for the period.
3. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio;
b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and
since inception compared to the City’s market benchmark returns for the same periods;
4. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.
5. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.
XIX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.
GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
City of Fountain Valley 2025-26 Investment 27
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.
City of Fountain Valley 2025-26 Investment 28
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
COMMERCIAL PAPER. The short-term unsecured debt of corporations.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed
City of Fountain Valley 2025-26 Investment 29
coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.
FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.
FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests of their clients.
LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.
MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.
MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
MODIFIED DURATION. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.
Examples of investments in money market funds are certificates of deposit and U.S.
Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.
City of Fountain Valley 2025-26 Investment 30
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.
MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.
NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or statelicensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).
PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.
PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDICinsured deposits with one or more banks, savings and loans, and credit unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.
PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.
Government securities market.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.
SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.
SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.
1 STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semiannually.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
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Patrick Harper’s
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Jim Cunneen’s
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Glenn Grandis’s
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